This Week's IPOs Part I: Cardiomems, Cinemark Holdings, Edenor

|
Includes: CNK, EDN, SENS-OLD
by: Abbi Adest

IPOs on deck for this week include: Cardiomems (SENS-OLD), a medical device company specializing in wireless communication technology for the human body; Cinemark Holdings (NYSE:CNK), a movie distribution company serving the U.S. and Latin America; Edenor (NYSE:EDN), an Argentinian electric utility.

All quotations are from the companies' most recent S-1 filings with links provided.

CARDIOMEMS, INC. (SENS-OLD)
Business Overview (from prospectus)

We are a medical device company that has developed and is commercializing a proprietary wireless sensing and communication technology for the human body. Our technology platform is designed to improve the management of severe chronic cardiovascular diseases such as heart failure, aneurysms and hypertension. Our miniature wireless sensors can be implanted using minimally invasive techniques and transmit cardiac output, blood pressure and heart rate data that are critical to the management of patients. Due to their small size, durability, and lack of wires and batteries, our sensors are designed to be permanently implanted into the cardiovascular system. Using radiofrequency, or RF, energy, our sensors transmit real-time data to our external electronics modules, which then communicate this information to the patient’s physician. We believe frequent, on-demand, real-time monitoring of vital information enables proactive patient management, which holds the promise of reducing hospitalizations, improving a patient’s quality of life and delivering more efficient and cost effective health care.

Offering: 6.0 million shares at $12.00 - $14.00 per share. Net proceeds of approximately $70.6 million will be used for product development, sales and marketing activities and general corporate purposes.

Lead Underwriters: Banc of America, Jefferies

Financial Highlights:

Our revenue in 2005 [$95,000] and 2006 [$3,413,000] was derived from the sale of our EndoSure sensors... Cost of revenue consists of material, labor, freight and the associated overhead costs related to the processes employed in the production of our EndoSure sensors: [2005: $54,000, 2006: $1,913,000]


CINEMARK HOLDINGS (CNK)

Business Overview (from prospectus)

We are a leader in the motion picture exhibition industry with 396 theatres and 4,488 screens in the U.S. and Latin America. Our circuit is the third largest in the U.S. with 281 theatres and 3,523 screens in 37 states. We are the most geographically diverse circuit in Latin America with 115 theatres and 965 screens in 12 countries. During the year ended December 31, 2006, over 215 million patrons attended our theatres, when giving effect to the Century acquisition as of the beginning of the year. Our modern theatre circuit features stadium seating for approximately 73% of our screens.

Offering: 28.0 million shares at $17.00 - $19.00 per share. Net proceeds of approximately $233.6 million will be used to repay outstanding debt.

Lead Underwriters: Lehman Brothers, Credit Suisse, Merrill Lynch

Financial Highlights:

Total revenues increased $200.0 million to $1,220.6 million for 2006 from $1,020.6 million for 2005, representing a 19.6% increase...Theatre operating costs were $889.8 million, or 72.9% of revenues, for 2006 compared to $764.0 million, or 74.9% of revenues, for 2005...We recorded a loss on sale of assets and other of $7.6 million during 2006 compared to $4.4 million during 2005.

EDENOR (EDN)
Business Overview (from prospectus)

We are the largest electricity distribution company in Argentina in terms of number of customers and electricity sold (both in GWh and in Pesos) in 2006, according to figures published by the Electricity Distributors Association of the Republic of Argentina (Asociación de Distribuidores de Energía Eléctrica de la República Argentina, or ADEERA). We believe we are also one of the largest electricity distributors in Latin America in terms of customers and volume of electricity sold.

Offering: 15.2 million shares at $16.00 - $18.00 per share. Net proceeds of approximately $57.7 million will be used to repay debt.

Lead Underwriters: Citigroup, J.P. Morgan

Financial Highlights:

Our net sales increased 9.2% to Ps. 1,378.3 million in the year ended December 31, 2006, from Ps. 1,262.2 million in the year ended December 31, 2005, due to a 4.7% increase in energy sales and a 65.3% reduction in fines and penalties...Our gross margin increased 14.8% to Ps. 579.3 million in the year ended December 31, 2006 from Ps. 504.5 million in the year ended December 31, 2005. Our gross margin as a percentage of net sales increased to 42.0% in the year ended December 31, 2006 from 40.0% in the year ended December 31, 2005, due to a reduction in fines and penalties and an increase in energy sales and pole leases... Net operating income increased to Ps. 35.9 million in the year ended December 31, 2006 from a loss of Ps. 0.4 million in the year ended December 31, 2005, primarily as a result of the Ps. 74.8 million (14.8%) increase in our gross margin, which was partially offset by the Ps. 20.4 million (28.0%) increase in administrative expenses and a Ps. 16.0 million (4.6%) increase in transmission and distribution expenses

About this article:

Expand
Want to share your opinion on this article? Add a comment.
Disagree with this article? .
To report a factual error in this article, click here