China Kanghui Holdings, a Chinese manufacturer of orthopedic implants backed by investors including IDG Capital, SIG Asia Investment, TDF Capital and CDH Venture Capital, has filed for a $75 million IPO on the New York Stock Exchange (NYSE).
The company has proposed to trade on the NYSE under the symbol KH, according to its filing to the US Securities and Exchange Commission, and plans to use proceeds from the offering to develop its product pipeline, expand its manufacturing capacities, and enhance its sales and marketing capabilities, with other general corporate purposes.
It was not disclosed whether shareholders would be selling part of their stakes in Kanghui as part of the IPO process. None of the private equity firms involved could be reached by press time.
Established in 1997, Changzhou-based Kanghui makes orthopedic implants for the treating of trauma and spinal conditions. The company has a network of 237 distributors that cover 30 provinces, municipalities and autonomous regions in China, with another 27 distributors that sell its products in 24 countries worldwide, according to the filing.
IDG Capital Partners, a China-focused investment firm, in collaboration with Accel Partners, a Silicon Valley-headquartered venture capital firm, invested $3.1 million in July 2006 and $4 million in January 2008 in Kanghui, and holds a 21.5 percent stake of the company.
TDF Capital, a Shanghai-based venture capital firm focused on investments in the consumer, media and technology sectors, invested $1.9 million in July 2006 and $2.4 million in January 2008 in Kanghui, for a 12.4 percent stake.
In January 2008, Kanghui received investments of $14.1 million from SIG Asia Investments, affiliated with the US financial services firm Susquehanna International Group, and $7 million from CDH Venture Capital, a Chinese venture capital firm. The two firms hold stakes of 18.4 percent and 9 percent respectively.
Morgan Stanley and Piper Jaffray are the lead underwriters on the deal.