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Thursday, September 21, 2006

Home Diagnostics IPO Misses the Mark

Home Diagnostics Inc. (HDIX) priced its IPO of 6.6 million shares at $12.00 per share, under the $14.00 to $16.00 original range.

Underwriters in the offering are J.P.Morgan as sole book-runner; and Piper Jaffray, Deutsche bank, and William Blair were listed as co-managers.

Of the offering only 3.3 million shares are being sold by the company, so the othetr half of the offering is from selling ahreholders. It intends to use the net proceeds from the offering to redeem all of its outstanding preferred stock, to purchase manufacturing equipment for new product development, to repay indebtedness under its revolving credit, and the remaining balance will be used for general corporate purposes.

Home Diagnostics is actually in a high-demand area as it is a manufacturer and marketer of diabetes testing supplies. With a portfolio of blood glucose monitors that spans the spectrum from standard to advanced systems, Home Diagnostics, Inc. offers products that can help every person with diabetes better monitor and manage their disease. Unfortunately, this didn't help it command an at-the-money pricing for its IPO.

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