K2M’s IPO will Build on Sales Growth to Fund Future Growth

Spinal technologies company K2M, Inc. is going public in a bid to reduce its debt and fund future growth. The company announced its intentions back in January and it has now been reported that it could raise $100 million through shares of its common stock.

Background

K2M has always started its press releases with the proud boast that it is the largest “privately held” spinal device company in the world focused on developing innovative solutions for the treatment of complex spinal pathologies and minimally invasive procedures. Well, that may soon no longer be the case as the company bids to escape the catch 22 situation of having ever-growing sales alongside ever-significant losses. For 2013 a net loss of $57.4 million accompanied revenue growth of 17% to $157.8 million, so what else is a company to do but go public. By raising an estimated $100 million K2M will be able to reduce or even completely pay down its debt while stepping up investment in its development and commercialisation activities. According to its recent newsflow, K2M has been around for over ten years now, in which time it has developed 57 product lines, many of which we’ve detailed on our pages.

Source: K2M, Inc., Market Watch

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