China Cord Blood Completes Secondary Offering on NYSE

| About: China Cord (CO)

China Cord Blood Corporation (NYSE: CO) listed its ordinary shares on the New York Stock Exchange and, at the same time, completed a secondary offering. The company placed 3.3 million shares at a price of $6.05 for gross proceeds of $20 million. China allows one cord blood collection license for each major area, and China Cord Blood owns the licenses for Beijing and Guangdong.

The 3.3 million shares involved in the transaction represent 5% of the total outstanding ordinary shares, which now number 66.1 million. A small number of units were previously traded on the OTC Bulletin Board Exchange under the symbol CNDZF; each unit consisted of one ordinary share and two warrants.

In open market trading, the ordinary shares of China Cord Blood slipped 12 cents in their first session to $5.93. At this price, the company has a market capitalization of $392 million. In the twelve months ended March 31, 2009, China Cord Blood reported $28.5 million of revenue and net income of $3 million.

Golden Meditech, a China-based healthcare company traded on the Hong Kong Exchange, owns 44% of CCBC.

CCBC said that, so far, the PRC has granted only six licenses for cord blood collection centers in China. Another four licenses are expected in 2010. China Cord Blood Corporation provides cord blood collection, laboratory testing, hematopoietic stem cell processing, and stem cell storage services.

Disclosure: none.