Saluda Medical raised about $231 million at $2.65 in December, the biggest ASX float of the month. It now trades at 61 cents. It has also upgraded its revenue guidance twice and beaten its own prospectus forecast.
A sinking float
Saluda is a commercial-stage medical device company. Its Evoke system delivers closed-loop spinal cord stimulation for chronic pain: it measures the nerves’ response to every pulse and adjusts the therapy automatically. The board includes Catherine Livingstone, the former Cochlear chief executive and former Commonwealth Bank chair.
When Saluda Medical’s shares began trading on 5 December 2025, it opened at $1.90, already 28% below the $2.65 offer price, and closed their first session at $1.27.
The stock has never traded at its offer price. It touched 36 cents in late May and closed at 61 cents on 24 August, down 77% from the float.
The float itself was no small thing.
Saluda raised $230.8 million, and the ASX’s own review of 2025 listings puts it among the year’s largest raisings, behind only GemLife ($750 million), Virgin Australia ($685 million) and Greatland Resources ($504 million) among those the exchange named.
Rising revenues
The prospectus forecast revenue of US$81.9 million for the year to 30 June 2026. In January, with its first quarterly report as a listed company, Saluda raised that guidance to US$85 million. In April it raised it again, to US$87 million. In July it reported US$90.2 million, unaudited, up 28% on the prior year and about 10% above the original prospectus number.
Quarterly revenue built through the year, from US$18.3 million in the September quarter to US$27 million in the June quarter. Operating cash burn for the year was US$118.2 million, better than the prospectus estimate of US$123.9 million, and the company ended June with US$116.4 million in cash plus a US$25 million undrawn facility, available subject to conditions until 31 December 2026.
In late June, its CAP24 surgical lead won FDA approval.
The case for Saluda
On this week’s Switzer Show, Michael Wayne, founder of Medallion Financial, put the divergence at the centre of his pitch.
“Saluda was one of the largest IPOs, if not the largest IPO, from last year… It was the worst performing IPO for a market cap over 500 million, probably ever, certainly in decades.”
“It’s a business that’s been sold off incredibly far, despite the fact that it has exceeded its prospectus IPO numbers. So [it] has been revising up revenue forecasts. I think the big concern the market has was the cash burn… but the trajectory of that cash burn is starting to improve. We think that it’s got significant upside.”
The company spent the year expanding its US sales force, and cut around 50 non-commercial roles from the end of the December quarter, a reduction it says was foreshadowed in the prospectus.
Wayne reads the sales investment as the point: “They’ve retooled. They’ve built out their sales force, which does take time and does cost a lot of money often. But there are signs that those sales staff are really starting to deliver.”
He filed it firmly in the speculative bucket: “It’s again, speculative, but I’m trying to identify the next [Megaport] or the next Pro Medicus for you…”
Saluda’s full-year results are due this Friday.
Prices as at the 24 August 2026 close; company figures from Saluda’s ASX quarterly reports (Appendix 4C) of 28 January, 30 April and 29 July 2026 and the ASX admission notice of 3 December 2025. Saluda’s ASX securities are CHESS Depositary Interests, ten per underlying share; prices quoted are per CDI. Revenue and cash figures are in US dollars; the raise and share prices in Australian dollars. This article does not take into account the investment objectives, financial situation or particular needs of any individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances. Before acting on anything we discuss, we strongly recommend you seek the appropriate professional advice.
