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K2M Group Holdings announces initial IPO pricing
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K2M Group Holdings Inc. announced in a press release the pricing of its initial public offering of 8,825,000 shares of common stock at a price of $15 per share.
The selling stockholders named in the registration statement have granted the underwriters a 30-day option from the date of the prospectus to purchase up to 1,323,750 additional shares of common stock at the initial public offering price, less underwriting discounts. K2M Group Holdings will not receive proceeds from any exercise by the underwriters of their option to purchase additional shares from the selling stockholders.
K2M Group Holdings expects to accrue up to $120 million from this offering, after deducting underwriting discounts and estimated offering expenses, according to the press release.
The company expects to use the net proceeds from the offering to retire all indebtedness outstanding under the notes held by certain of its shareholders, repay all of the outstanding borrowings under its asset-based revolving credit facility. The company also expects to pay all accumulated and unpaid dividends on its Series A redeemable convertible preferred stock and its Series B redeemable convertible preferred stock, and for working capital and general corporate purposes.
The stock will start to be sold on May 8 under the trading symbol “KTWO,” according to the announcement.
K2M is a spinal device company focused on the research, development, and commercialization of solutions for the treatment of complex spinal pathologies and minimally invasive procedures, according to the company’s profile. The company reported $157.6 million in revenue in 2013, up from $60.4 million in 2008.
The company submitted its S-1 Draft Registration Statement for the IPO in January.