Analysis of Recent IPO China GrenTech (GRRF)

| About: China Grentech (GRRF)

Wireless products and services company China GrenTech Corporation Limited (GRRF), based in Shenzhen, China, plans on offering 6.25 million ADS (1.25 million by insiders) at a price range of $14- $16. Bear Stearns is lead managing the offering, co-managers are Piper Jaffray and WR Hambrecht + Co. Post-offering GRRF will have 25 million ADS outstanding for a market cap mid-range of $375 million. Although not mentioned, it does appear as if close to 1/2 the proceeds from this offering will be going to repay outstanding debt. Additional IPO proceeds are being utilized for R&D, to expand production, sales and marketing and for general corporate purposes.

From the F-1:

“We are a leading provider of wireless coverage products and services in China. We also believe we are a leading developer of radio frequency, or RF, technology in China.