04.23.14
K2M Group Holdings Inc., which develops and sells medical devices for use in spinal surgeries, released the terms for its initial public offering (IPO) on April 22. The stock could begin trading as soon as May 5.
When the company originaily announced its IPO plans earlier this year, company officials estimated that $100 million would be raised.
Now, however, the number has been tweaked upward, and the Leesburg, Va.-based company plans to raise between $141 million and $159 million by offering about 8.8 million shares at a price range of $16 to $18. At the midpoint of the proposed range, it would command a fully diluted market value of $677 million. Deal underwriters have the option to purchase an additional 1.3 million shares, which could bring the total amount raised closer to $182 million.
New York, N.Y.-based investment firm Welsh, Carson, Anderson & Stowe acquired a controlling interest in the company in 2010 and will continue to own a majority of shares in the company.
K2M, which was founded in 2004, had about $158 million in sales for fiscal 2013 (ended Dec. 31), representing an increase of 17 percent on a reported basis compared to $135.1 million in 2012. Gross margin for 2013 increased to 68.2 percent in 2013, from 65.7 percent in 2012 and 59.3 percent in 2011. The company's complex spine, minimally invasive, degenerative and international segments grew at 7, 12, 16 and 30 percent on a reported basis, respectively, in 2013. International sales accounted for 29 percent of the company's total revenue in 2013. Despite the impressive revenue gains, the company posted a $37.9 million loss for FY13.
K2M plans to list on the NASDAQ under the symbol KTWO.
When the company originaily announced its IPO plans earlier this year, company officials estimated that $100 million would be raised.
Now, however, the number has been tweaked upward, and the Leesburg, Va.-based company plans to raise between $141 million and $159 million by offering about 8.8 million shares at a price range of $16 to $18. At the midpoint of the proposed range, it would command a fully diluted market value of $677 million. Deal underwriters have the option to purchase an additional 1.3 million shares, which could bring the total amount raised closer to $182 million.
New York, N.Y.-based investment firm Welsh, Carson, Anderson & Stowe acquired a controlling interest in the company in 2010 and will continue to own a majority of shares in the company.
K2M, which was founded in 2004, had about $158 million in sales for fiscal 2013 (ended Dec. 31), representing an increase of 17 percent on a reported basis compared to $135.1 million in 2012. Gross margin for 2013 increased to 68.2 percent in 2013, from 65.7 percent in 2012 and 59.3 percent in 2011. The company's complex spine, minimally invasive, degenerative and international segments grew at 7, 12, 16 and 30 percent on a reported basis, respectively, in 2013. International sales accounted for 29 percent of the company's total revenue in 2013. Despite the impressive revenue gains, the company posted a $37.9 million loss for FY13.
K2M plans to list on the NASDAQ under the symbol KTWO.