By Liana B. Baker
NEW YORK, Aug 11 (Reuters) - Shares of orthopedic implant maker China Kanghui Holdings rallied in their debut on Wednesday, bolstered by investor interest in the orthopedic industry's growth potential in China.
China Kanghui, which makes medical devices that help treat bone fractures, bucked a market slump which saw major indexes take their biggest dive in more than three weeks. MediaMind Technologies Inc, the day's other big market debut, did not fare as well. Shares fell 4 percent.
China Kanghui shares rose nearly 19 percent on the New York Stock Exchange. Based in the eastern Chinese city of Changzhou, China Kanghui makes medical equipment from materials like titanium and stainless steel to treat bone fractures.
Investors like the company's potential in the Chinese orthopedic market, said Renaissance Capital research analyst Nick Einhorn. It is expected to grow 18 percent annually through 2015. 'The company can probably grow at least that fast or faster,' Einhorn said.
China Kanghui, which raised $68.4 million in its IPO on Tuesday, is the second-largest player in that market, he said.
China Kanghui is one of the only recent Chinese IPOs that has held steady and risen in its debut, said IPO Boutique Senior Managing Partner Scott Sweet.
Chinese IPOs have fallen out of favor with investors this year, Sweet said. Ambow Education Holding Ltd, an education services provider, closed down 7.5 percent after its Aug. 5 debut and is trading 15 percent below its IPO price.
Shares of Camelot Information Systems, a Beijing-based business software maker, have fallen 2.1 percent since the company went public on July 21.
China Kanghui posted a wider net loss in the first quarter, but its revenue grew 29.6 percent to 48.8 million yuan ($7.2 million) in the first three months of 2010.
'It's got good profitability, which you don't always get with medical device companies,' Renaissance Capital's Einhorn said.
The day's other big debut, digital advertising company MediaMind, did not do as well. Shares fell to $11. MediaMind's debut, a dollar below an already lowered IPO price of $11.50, signals a broken deal, IPO Boutique's Sweet said.
MediaMind, which raised $57.5 million, was formerly known as Eyeblaster, and helps advertisers manage their budgets across online, mobile and video platforms.
Investors were cautious about the company's prospects in the competitive digital advertising market. Two of MediaMind's competitors, Double Click and aQuantive, were bought by Google Inc and Microsoft in 2007.
Morgan Stanley and Piper Jaffray led the underwriters on the China Kanghui IPO. Deutsche Bank Securities and JPMorgan led underwriters on the MediaMind IPO.
(Reporting by Liana B. Baker; additional reporting by Clare Baldwin; editing by Derek Caney, Andre Grenon and Robert MacMillan) Keywords: IPOS/ (liana.baker@thomsonreuters.com, +1 646 223 6189) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
NEW YORK, Aug 11 (Reuters) - Shares of orthopedic implant maker China Kanghui Holdings rallied in their debut on Wednesday, bolstered by investor interest in the orthopedic industry's growth potential in China.
China Kanghui, which makes medical devices that help treat bone fractures, bucked a market slump which saw major indexes take their biggest dive in more than three weeks. MediaMind Technologies Inc, the day's other big market debut, did not fare as well. Shares fell 4 percent.
China Kanghui shares rose nearly 19 percent on the New York Stock Exchange. Based in the eastern Chinese city of Changzhou, China Kanghui makes medical equipment from materials like titanium and stainless steel to treat bone fractures.
Investors like the company's potential in the Chinese orthopedic market, said Renaissance Capital research analyst Nick Einhorn. It is expected to grow 18 percent annually through 2015. 'The company can probably grow at least that fast or faster,' Einhorn said.
China Kanghui, which raised $68.4 million in its IPO on Tuesday, is the second-largest player in that market, he said.
China Kanghui is one of the only recent Chinese IPOs that has held steady and risen in its debut, said IPO Boutique Senior Managing Partner Scott Sweet.
Chinese IPOs have fallen out of favor with investors this year, Sweet said. Ambow Education Holding Ltd, an education services provider, closed down 7.5 percent after its Aug. 5 debut and is trading 15 percent below its IPO price.
Shares of Camelot Information Systems, a Beijing-based business software maker, have fallen 2.1 percent since the company went public on July 21.
China Kanghui posted a wider net loss in the first quarter, but its revenue grew 29.6 percent to 48.8 million yuan ($7.2 million) in the first three months of 2010.
'It's got good profitability, which you don't always get with medical device companies,' Renaissance Capital's Einhorn said.
The day's other big debut, digital advertising company MediaMind, did not do as well. Shares fell to $11. MediaMind's debut, a dollar below an already lowered IPO price of $11.50, signals a broken deal, IPO Boutique's Sweet said.
MediaMind, which raised $57.5 million, was formerly known as Eyeblaster, and helps advertisers manage their budgets across online, mobile and video platforms.
Investors were cautious about the company's prospects in the competitive digital advertising market. Two of MediaMind's competitors, Double Click and aQuantive, were bought by Google Inc and Microsoft in 2007.
Morgan Stanley and Piper Jaffray led the underwriters on the China Kanghui IPO. Deutsche Bank Securities and JPMorgan led underwriters on the MediaMind IPO.
(Reporting by Liana B. Baker; additional reporting by Clare Baldwin; editing by Derek Caney, Andre Grenon and Robert MacMillan) Keywords: IPOS/ (liana.baker@thomsonreuters.com, +1 646 223 6189) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.