In March 2014, K2M filed with the U.S. Securities and Exchange Commission for an initial public offering. Today the company announced the price of it's initial public offering: $15 per share.
In March, Biomt filed for an IPO of up to $100 million, but then Zimmer acquired the company for $13.35 million at the end of April. Spine device company LDR also filed an IPO last year, and in April the company announced plans on a follow-on offering of its common stock to raise $25 million. Analysts predict additional moves to grow and then consolidate will be prevalent in the medical device field going forward.
Here are five things to know about K2M's IPO:
1. K2M initially planned on raising up to $100 million through its IPO. The amount has, however, been raised to between $141 million and $159 million. K2M is a global medical device company focused on designing, developing and commercializing complex spine and minimally invasive spine technologies and techniques. The company was founded 10 years ago and is based in Leesburg, Pa. Co-Founders John Kostuik, MD, is chairman and chief medical officer and Eric Major is president and CEO.
2. The pricing of the IPO has been set at $15 per share, and the company will offer approximately 8.8 million shares of common stock. The common stock is expected to begin trading on The NASDAQ Global Select Market on May 8, under the trading symbol "KTWO." The company plans to grow international in the future, with nearly 30 percent of revenue came from overseas, which is a 16 percent increase over 2011, according to a Washington Business Journal report.
3. Piper Jaffray, Barclays and Wells Fargo Securities are the joint underwriters on the deal, and William Blair & Company and Cowen and Company are acting as co-managers. The company plans to use the proceeds to pay outstanding indebtedness, accumulated dividends and unpaid dividends as well as for working capital and general corporate purposes, according to a Health Point Capital report.
4. The company has grown quickly since New York investment firm Welsh, Carson, Anderson & Stowe acquired controlling interest in 2010. In January 2014, it received U.S. Food and Drug Administration 510(k) clearance for its CAYMAN Minimally Invasive, the newest of the CAYMAN plate systems. The CAYMAN Minimally Invasive is a single-level lateral plate with a low profile and four-screw construct. The plate is also designed using K2M's proprietary tifix Locking Technology.
5. K2M reported nearly $157.6 million in revenue last year, but also saw a $37.9 million loss. Welsh, Carson, Anderson & Stowe will continue to own a majority of shares in the company, according to a Washington Business Journal report.
More Articles on Devices:
5 Key Results: LDR's Mobi-C Artificial Disc Replacement vs. ACDF
FDA Clears AccelSPINE's Next Generation Minimally Invasive Spine System
Global Medical Device Market to Grow at 6.2% Annually Until 2018