Mindray Medical sets $10-$12 target price for upcoming IPO

By Angela McDaniels

Seattle, Sept. 11 - Mindray Medical International Ltd. will offer 20 million American Depositary Shares representing class A ordinary shares in its upcoming initial public offering and talked the initial price at between $10.00 and $12.00 per ADR, according to an F-1/A report filed with the Securities and Exchange Commission on Monday.

Mindray will sell 10.643 million of the 20 million ADRs and current shareholders will sell the remaining 9.357 million ADRs. There is a greenshoe for 3 million additional ADRs.

The company originally filed for the IPO at an estimated size of $276 million on Sept. 6.

Goldman Sachs (Asia) LLC and USB Investment Bank are joint bookrunners. JPMorgan, CIBC World Markets Corp., First Shanghai Capital Ltd. and Piper Jaffray & Co. are also in the syndicate.

The Shenzhen, China-based company develops and markets medical devices. It has more than 40 products across three primary business segments: patient monitoring devices, diagnostic laboratory instruments and ultrasound imaging systems.

Of the proceeds, $75 million will be used to build a new headquarters building and to expand the company's manufacturing, assembly and warehouse facilities. The remainder will be used to fund working capital and for general corporate purposes.

The company had 84,099,572 ordinary shares, 57,289,767 class A ordinary shares, 46,437,910 class B ordinary shares and 8,975,105 convertible redeemable preferred shares outstanding at June 30.

Co-chief executive officer Xu Hang is the largest shareholder with 24.73% of the equity, followed by co-CEO Li Xiting at 21.57% and director Andrew Wolff and The GS Funds at 9.64%.

Mindray Medical said it had RMB177.916 million of operating income on net revenue of RMB676.764 million for the first six months of 2006, compared with RMB86.561 million of operating income on RMB436.776 million of net revenue for the same period of 2005.

Cash and cash equivalents were RMB212.875 million at June 30.

The company has received approval to list its ADRs on the New York Stock Exchange under the symbol "MR."

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