Kestra Medical Technologies, Ltd. Announces Pricing of Upsized Primary Public Offering of Common Shares

Rhea-AI Summary

Kestra Medical Technologies (Nasdaq: KMTS) priced an upsized underwritten public offering of 6,000,000 common shares at $23.00 per share, producing expected gross proceeds of $138,000,000.

The company granted the underwriters a 30-day option to buy up to 900,000 additional shares at the offering price less discounts. The offering is expected to close on December 4, 2025, subject to customary closing conditions. A registration statement was declared effective on December 2, 2025.

Positive

• $138,000,000 expected gross proceeds from the offering
• Offering price set at $23.00 per share for 6,000,000 shares
• Underwriters include BofA, Piper Sandler, J.P. Morgan, Goldman Sachs, Wells Fargo

Negative

• Underwriters granted 30-day option for up to 900,000 additional shares
• Offering subject to customary closing conditions; closing not guaranteed
• Potential share dilution from sale of 6,000,000 shares and optioned 900,000

News Market Reaction

-6.80% 5.3x vol

47 alerts

-6.80% News Effect

+5.1% Peak Tracked

-12.9% Trough Tracked

-$101M Valuation Impact

$1.39B Market Cap

5.3x Rel. Volume

On the day this news was published, KMTS declined 6.80%, reflecting a notable negative market reaction. Argus tracked a peak move of +5.1% during that session. Argus tracked a trough of -12.9% from its starting point during tracking. Our momentum scanner triggered 47 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $101M from the company's valuation, bringing the market cap to $1.39B at that time. Trading volume was exceptionally heavy at 5.3x the daily average, suggesting significant selling pressure.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Offering size: 6,000,000 shares Offer price: $23.00 per share Gross proceeds: $138,000,000 +5 more

8 metrics

Offering size 6,000,000 shares Common shares in upsized underwritten public offering

Offer price $23.00 per share Public offering price for common shares

Gross proceeds $138,000,000 Expected gross proceeds before fees and expenses

Underwriter option size 900,000 shares Additional common shares under 30-day option

Overallotment period 30 days Duration of underwriters’ option to purchase extra shares

Expected closing date December 4, 2025 Target closing for the public offering

Effectiveness date December 2, 2025 Date SEC declared registration statement effective

Current price $24.91 Price prior to news, vs $23.00 offering price

Market Reality Check

Price: $24.71 Vol: Volume 329,391 vs 20-day ...

normal vol

$24.71 Last Close

Volume Volume 329,391 vs 20-day average 375,225 (relative volume 0.88x) ahead of the offering. normal

Technical Shares at $24.91 are trading above the 200-day MA of $21.57 and about 16.97% below the 52-week high.

Peers on Argus

KMTS was down 0.89% while key peers showed mixed moves (e.g., EMBC up 2.58%, STA...

1 Up

KMTS was down 0.89% while key peers showed mixed moves (e.g., EMBC up 2.58%, STAA down 2.33%). Momentum scanner flagged only one peer (NNNN) moving up, suggesting today’s action was stock-specific rather than sector-driven.

Historical Context

5 past events · Latest: Dec 03 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 03	Earnings call date	Neutral	+12.2%	Scheduled Q2 FY26 results call and webcast on December 11, 2025.
Dec 02	Equity offering priced	Negative	-6.8%	Upsized underwritten offering priced at $23 for 6,000,000 shares plus option.
Dec 01	Equity offering announced	Negative	-8.5%	Proposed underwritten offering of 5,500,000 shares with underwriter option.
Dec 01	Preliminary earnings	Positive	-8.5%	Preliminary Q2 FY26 results showed ~52% revenue growth and margin expansion.
Nov 10	Clinical study data	Positive	+0.8%	ACE-PAS real-world study confirmed strong ASSURE device effectiveness and safety.

Pattern Detected

Recent capital-raising headlines have been followed by negative price reactions, contrasting with a strong positive move on an earnings call scheduling and a divergence on upbeat preliminary results.

Recent Company History

Over the last month, KMTS reported preliminary Q2 FY26 results with revenue of $22.2–$22.6M and higher gross margins, yet the stock fell 8.49%. A proposed primary offering on Dec 1 and the upsized priced offering on Dec 2 both saw further declines, highlighting sensitivity to dilution. In contrast, announcing the upcoming Q2 earnings call on Dec 3 coincided with a 12.21% gain. Earlier in November, strong ACE-PAS study data produced only a modest positive reaction.

Market Pulse Summary

The stock moved -6.8% in the session following this news. A negative reaction despite the offering p...

Analysis

The stock moved -6.8% in the session following this news. A negative reaction despite the offering pricing might fit the pattern seen on Dec 1–2, 2025, when earlier offering news coincided with drops of 8.49% and 6.8%. The decline would reflect market focus on dilution from the 6,000,000 new shares and additional 900,000-share option, even though KMTS traded above its $21.57 200-day MA and well off the 52-week low.

Key Terms

underwritten public offering, gross proceeds, underwriters, bookrunners, +2 more

6 terms

underwritten public offering financial

"announced the pricing of its upsized underwritten public offering of 6,000,000"

An underwritten public offering is when a company sells new shares of its stock to the public with the help of a financial firm, called an underwriter. The underwriter agrees to buy all the shares upfront, reducing the company's risk, and then sells them to investors. This process helps companies raise money quickly and confidently from a wide range of buyers.

gross proceeds financial

"The gross proceeds to Kestra from the offering, before deducting underwriting"

The total amount of cash a company receives from a financing event or sale before any fees, expenses, taxes or deductions are taken out. Investors watch gross proceeds because it shows the raw scale of new capital being raised—think of it as the paycheck amount before withholdings—which helps assess how much funding is available for operations, growth, debt payoff or how much shareholder dilution might occur once costs are removed.

underwriters financial

"Kestra has granted the underwriters a 30-day option to purchase up to"

Underwriters are financial professionals or institutions that help companies raise money by selling new securities, such as stocks or bonds, to investors. They assess the risk and determine the price at which these securities should be sold, acting like a bridge between the company and the investors. Their role helps ensure that the company raises the needed funds while providing investors with options that reflect the level of risk involved.

bookrunners financial

"BofA Securities, Piper Sandler, J.P. Morgan, Goldman Sachs & Co. LLC and Wells Fargo Securities are acting as bookrunners"

Bookrunners are financial institutions or banks that lead the process of organizing and managing the sale of new securities, such as stocks or bonds, to investors. They coordinate the offering, determine the initial price, and ensure that the securities are sold efficiently, much like a conductor directs an orchestra to deliver a smooth performance. Their role matters to investors because they help ensure the offering is successful and fairly priced.

prospectus regulatory

"The offering is being made only by means of a prospectus. A preliminary prospectus"

A prospectus is a detailed document that explains a company's plans for offering new shares or investments to the public. It’s important because it provides potential investors with key information about the company’s business, risks, and how they might make money, helping them decide whether to invest. Think of it as a guidebook for understanding what you're buying into.

registration statement regulatory

"A registration statement relating to these securities was filed with the U.S."

A registration statement is a formal document that companies file with a government agency to offer new shares of stock to the public. It provides essential information about the company's finances, operations, and risks, helping investors make informed decisions. Think of it as a detailed product description that ensures transparency and trust before buying into a company.

AI-generated analysis. Not financial advice.

KIRKLAND, Wash., Dec. 02, 2025 (GLOBE NEWSWIRE) -- Kestra Medical Technologies, Ltd. (Nasdaq: KMTS), a wearable medical device and digital healthcare company, today announced the pricing of its upsized underwritten public offering of 6,000,000 common shares at a price to the public of $23.00 per share. The gross proceeds to Kestra from the offering, before deducting underwriting discounts and commissions and other offering expenses, are expected to be $138,000,000. In addition, Kestra has granted the underwriters a 30-day option to purchase up to an additional 900,000 common shares at the public offering price, less underwriting discounts and commissions. The offering is expected to close on December 4, 2025, subject to the satisfaction of customary closing conditions.

BofA Securities, Piper Sandler, J.P. Morgan, Goldman Sachs & Co. LLC and Wells Fargo Securities are acting as bookrunners for the offering.

The offering is being made only by means of a prospectus. A preliminary prospectus related to the offering has been filed with the SEC and is available on the SEC’s website located at www.sec.gov. A final prospectus related to the offering will be filed with the SEC. Copies of the preliminary prospectus and, when available, the final prospectus, may be obtained from BofA Securities, Attention: Prospectus Department, NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, or by email at dg.prospectus_requests@bofa.com; Piper Sandler, 350 North 5th Street, Suite 1000, Minneapolis, MN 55401, Attention: Prospectus Department, by telephone at 800-747-3924 or by email at prospectus@psc.com; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com; or Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at (866) 471-2526 or by email at prospectus-ny@ny.email.gs.com.

A registration statement relating to these securities was filed with the U.S. Securities and Exchange Commission (“SEC”) and was declared effective on December 2, 2025. Copies of the registration statement can be accessed by visiting the SEC’s website at www.sec.gov. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Cautionary Statements Regarding Forward-Looking Information

Except where otherwise noted, the information contained in this press release is as of December 2, 2025. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about, among other topics, Kestra’s expectations regarding the closing of the offering and the grant of the option to purchase additional shares to the underwriters. Statements in this press release that express a belief, expectation or intention, as well as those that are not based on historical fact, as forward-looking statements. Given their forward-looking nature, these statements involve substantial risks, uncertainties and potentially inaccurate assumptions, and we cannot ensure that any outcome expressed in these forward-looking statements will be realized in whole or in part. You can identify these statements by the fact that they use future dates or use words such as “will,” “may,” “could,” “likely,” “ongoing,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “assume,” “target,” “forecast,” “guidance,” “goal,” “objective,” “aim,” “seek,” “potential,” “hope” and other words and terms of similar meaning. Among the factors that could cause actual results to differ materially from those currently anticipated include risks and uncertainties related to market conditions, satisfaction of customary closing conditions related to the offering and other risks and uncertainties described under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended April 30, 2025 filed with the SEC on July 17, 2025, and in other periodic reports filed by the Company with the SEC. These filings, when made, are available on the Investor Relations section of our website and on the SEC’s website at https://sec.gov/. Except as required by law, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

About Kestra
Kestra Medical Technologies, Ltd. is a commercial-stage wearable medical device and digital healthcare company focused on transforming patient outcomes in cardiovascular disease using monitoring and therapeutic intervention technologies that are intuitive, intelligent, and connected.

Investor contact
Neil Bhalodkar 
neil.bhalodkar@kestramedical.com 

FAQ

What did Kestra Medical Technologies (KMTS) price its public offering at?

Kestra priced the offering at $23.00 per share for 6,000,000 common shares.

How much gross proceeds will KMTS raise from the upsized offering?

The offering is expected to generate $138,000,000 in gross proceeds before fees and expenses.

When is the Kestra (KMTS) offering expected to close?

The offering is expected to close on December 4, 2025, subject to customary closing conditions.

Does Kestra (KMTS) give underwriters an option to buy more shares?

Yes; underwriters have a 30-day option to purchase up to 900,000 additional shares at the offering price less discounts.

Who are the lead bookrunners for the KMTS offering?

Bookrunners are BofA Securities, Piper Sandler, J.P. Morgan, Goldman Sachs, and Wells Fargo Securities.

Where can investors find the KMTS registration and prospectus?

A registration statement and preliminary prospectus are available on the SEC website (www.sec.gov).