Zeltiq Raises Net Proceeds Of $89.3 Mln In IPO

Zeltiq Aesthetics, Inc. (ZLTQ) said Monday that it has completed its initial public offering of 8.05 million shares of common stock at a price of $13.00 per share.

The amount sold includes 307,000 shares sold by selling shareholders. The shares began trading on October 19 on The Nasadaq Global Select Market under the ticker symbol "ZLTQ."

The company raised net proceeds of about $89.3 million from the sale of 7.743 million shares of its common stock. The company did not receive any of the proceeds from the sale of the shares offered by the selling shareholders.

What is Zeltiq?

Zeltiq is an FDA approved technology that uses cold therapy to freeze and destroy fat cells, with no surgery required. It is also called cryolipolysis and is a pain free method to rid yourself of fat in specific areas.

How does Zeltiq work?

Zeltiq uses precisely controlled, targeted cold therapy in a treatment that lasts about one hour per treatment area. The skin to be treated is suctioned between two cooling plates which modify the fat's temperature to just above freezing. Energy is extracted from the fat cell by the cold, causing it to die. Though it is referred to as cryolipolysis, it is not actually "freezing" the fat or the surrounding tissues. Rather, it crystallizes the lipids in fat cells causing the slow collapse of cells as they die. The procedure targets only fat cells and only those in the superficial fat layer close to the skin. The body then carries off the dead cells over the course of two to three months for a more gradual, natural result.