By Ateev Bhandari and Pritam Biswas

(Reuters) -Medical technology firm Heartflow said on Thursday it had raised $316.7 million in its U.S. initial public offering, setting the stage for its Nasdaq debut in another test of investor appetite for medical tech companies.

The Mountain View, California-based company sold 16.67 million shares at $19 each, compared with a targeted range of $17 to $18 apiece. It upsized its offering and raised the proposed range earlier this week reflecting strong demand.

The IPO valued the company at $1.54 billion.

U.S. IPOs have picked up pace in a much-awaited recovery, as solid tech earnings and progress on trade deals have helped restore investor confidence.

Strong recent debuts mark a reversal from early April, when uncertainty around U.S. President Donald Trump's tariffs paused dealmaking.

Heartflow's stock will begin trading on the Nasdaq on Friday under the "HTFL" ticker symbol. The closing of the offering is expected on August 11.

J.P. Morgan, Morgan Stanley and Piper Sandler are the lead underwriters for the offering.

Following software firm Figma's ( FIG ) blowout debut last week, analysts expect companies with a compelling growth story to be welcomed by the public markets.

"We expect Heartflow to be well received at launch, especially following Figma's ( FIG ) breakout success, which has helped reset sentiment toward high-growth names," IPOX CEO Josef Schuster said.

Bain Capital-backed Heartflow leverages AI to create 3D models of the heart via a single specialized scan, improving detection and treatment of coronary artery disease (CAD).

As AI gains widespread acceptance, companies embedding it into workflows for meaningful use cases are catching investor attention, with the technology powering gains across various Big Tech businesses.

Heartflow's revenue grew 39% for the quarter ended March 31 from a year earlier. Its platform to detect CAD was used in 132,000 patients in 2024.