Chinese orthopedic implant maker plans IPO
Orthopedic implant maker China Kanghui Holdings wants to raise $87 million in an initial public offering of its stock expected this week.
The Chinese company plans to offer about 6.7 million American Depository shares, including 1.3 million offered by selling shareholders, priced between an estimated range of $9.25 and $11.25, according to a Securities and Exchange Commission filing.
It expects net proceeds, minus commissions and other expenses, of about $46.9 million. It plans to use proceeds to develop its product pipeline and expand its manufacturing, among other goals.
China Kanghui does most of its business through two subsidiaries, Changzhou Kanghui Medical Innovation Co. Ltd., and Beijing Libeier.
It sells more than 30 product series, focusing on orthopedic implant products, trauma and spine. Trauma products include nails, plates and screws used in bone fracture surgery. It also makes meshes and interbody cages and fixation systems for spines.
"As a leading domestic player in China, we believe we are well positioned to capitalize on the trend toward increasing usage of domestically produced implants in the Chinese orthopedic market, China Kanghui said in the SEC filing.
The company also does business in Europe, South America and Africa and said it is targeting "densely populated, fast-growing emerging markets" like Brazil, India, Colombia and Russia.
China Kanghui plans to list it shares on the New York Stock Exchange under the symbol "KH."