Financings In Brief
This article was originally published in The Gray Sheet
Executive Summary
Electromed IPO would raise up to $13.8 million: Maker of the SmartVest airway clearance system for patients with compromised pulmonary function plans to raise up to $13.8 million in a proposed initial public offering, according to a May 3 filing with the Securities and Exchange Commission. The proceeds would be used for sales force expansion and R&D, as well as to add employees to the firm's reimbursement, patient services and administrative departments, according to the preliminary IPO prospectus. Founded in 1992, the New Prague, Minn., company generated sales of $13 million and net income of $1.3 million in fiscal 2009 (ended June 30), primarily from its 510(k)-cleared SmartVest system. The device generates high-frequency chest wall oscillation, also known as high-frequency chest compression, to help patients rid their lungs of excess lung secretions, thereby making them less likely to develop lung infections such as pneumonia. Recipients include those with cystic fibrosis, chronic obstructive pulmonary disease, muscular dystrophy and post-surgical airway complications, according to the company. Feltl and Company is underwriter for the IPO. The firm expects its shares to trade under the Nasdaq symbol "ELMD.
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Financings In Brief
China Kanghui Holdings IPO: Chinese orthopedic implant maker goes public Aug. 10 through a $68.4 million initial public offering comprised of about 6.68 million American Depositary Shares (ADSs) priced at $10.25 each, including 5.34 million ADSs offered by the company and 1.34 million ADSs offered by selling shareholders. Based in Changzhou, the firm primarily offers trauma and spine orthopedic implants for use in China, reporting 2009 sales of $27 million, up 32% from the prior year. Estimated IPO proceeds to the company of about $47 million will be used for R&D, expanded manufacturing capacity, enhanced sales and marketing capabilities and "general corporate purposes," the firm says. "We believe we are well positioned to capitalize on the trend toward increasing usage of domestically produced implants in the Chinese orthopedic market," the company notes in its IPO prospectus. China's orthopedic implant market is expected to grow from about $900 million in 2009 to about $2.4 billion in 2015, at roughly 18% annually, according to the company. The ADSs trade on the New York Stock Exchange under the symbol "KH." Underwriters for the IPO included Morgan Stanley, Piper Jaffray, Cowen and Company, and Canaccord Genuity
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