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Tuesday, September 26, 2006

Chinese Medical Device IPO: Mindray Medical Meets Strong Demand

Mindray Medical International (MR) has priced its 20 million share IPO at $13.50 per share, above the $10.00 to $12.00 indicated range. This Chinese medical device maker began developing products used to monitor vital signs for small- and mid-sized hospitals in China and now sells and manufactures ultrasound and diagnostic devices. It is deemed one of the leaders in all of its areas in China.

In 2005, the company grew its revenue 55% to $135 million. Its international sales have been growing at an annual rate of about 85% per year since 2003. Mindray will also launch its first color ultrasound monitor and a 5-part hematology analyzer. It is not just a Chinese story as the company is pursuing FDA approval in the US for more of its products and opening new sales offices in rapidly growing countries like India and Russia.

The majority of the IPO proceeds will go to opening is new HQ and manufacturing facility. That location goal is over $1 billion in revenue alone. This new higher price should give it an implied market cap in excess of $1.5 Billion.

The joint lead managers were listed as Goldman Sachs and UBS; co-managers were listed as J.P.Morgan, CIBC, Piper Jaffray, and First Shanghai Capital.

Jon C. Ogg
September 26, 2006

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