 |
| K2M's corpectomy cage system--Courtesy of K2M |
K2M revealed specific terms for its previously announced IPO. The spinal device company filed plans to raise $150 million to expand its product portfolio and support global development.
K2M will list on Nasdaq under the symbol "KTWO" and will offer approximately 8.8 million shares at a price range of $16 to $18, according to its S-1 filing. At the midpoint of the proposed range, the company would command a fully diluted market value of $677 million. Piper Jaffray, Barclays and Wells Fargo Securities are joint bookrunners on the deal.
The Leesburg, VA-based company hopes to cash in on a profitable spine surgery market with its public offering. According to iData Research, the global spine surgery market was valued at approximately $10 billion in 2012 and is expected to grow to $14.9 billion by 2019, K2M noted in its filing. Surgeons use the company's implants, surgical instruments and other devices to treat patients who suffer from degenerative spinal conditions. Since its founding in 2004, the company has commercialized 57 product lines and sells in 27 countries including the United States. K2M began international marketing in 2008.
A successful IPO could also provide a much-needed boost to the company's bottom line. K2M booked nearly $157.6 million in revenue in 2013, a sizable increase over the last two years. But the company also sustained a $37.9 million net loss in 2013 and has rarely reported a profitable quarter in its history.
K2M is not the only devicemaker eyeing an IPO. Earlier this month, Mainstay Medical announced plans to raise €23 million ($31.9 million) to develop its implantable neuromodulation device. California's TriVascular Technologies recently filed plans for a $100 million IPO to accelerate sales of its FDA-approved stent grafts. In March, U.K. device outfit Lombard Medical also hopped on the IPO bandwagon with a proposed $80 million IPO to expand marketing for its endovascular aortic repair tool.
- here's the S-1 filing
- check out Renaissance Capital's take