Analysis of Recent IPO 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.