Mindray Medical Stays Silent on Reasons for Secondary Offering

Mar. 7.10 | About: Mindray Medical (MR)

Mindray Medical (NYSE: MR), the medical device company, priced a secondary offering of 4 million American depositary shares at $38.20 per ADS, raising $152.8 million in new cash. Mindray closed the previous trading session at $38.00. Because Mindray seems to have plenty of cash, the offering was a surprise, and may indicate the company is eying some future acquisitions.

In its press release, Mindray was not particularly forthcoming about the reasons it was issuing new shares, saying only that it would use the proceeds for business development and general corporate purposes.

Mindray is solidly profitable and cash-flow positive. The company ended 2009 with cash and cash equivalents of $204.2 million, up from $131.0 million at the end of the third quarter. It generated $172.2 million from operating activities for full-year 2009. In the fourth quarter alone, cash flow equaled $86.3 million.

Before this latest fund raising, Mindray had 113.7 million shares outstanding. The company has a market capitalization of just over $4 billion.

Disclosure: none.