Juner New Materials: On the Road to IPO (TN)

Juner New Materials (Juner) is a private China-based company that develops, produces, and distributes modified plastic compounds. Founded in 1995 by female serial entrepreneur Xiaomin Chen, Juner has exhibited strong performance and growth potential in the past fifteen years. The company currently has a workforce of more than 300 employees and is an icon of high-technology ventures in Zhejiang province. As Juner strives to become the leader in China's modified plastics industry, the company presently faces scalability challenges primarily limited by financing constraints. Recently, with two major competitors having raised additional capital through their respective public offerings, Juner has reacted to these market changes. Since competition was aggressively dedicating new resources toward production and service capacity expansion, by June 2010 it was apparent that external funding was imperative for extending and sustaining Juner's competitive edge. Upon several discussions, Chen and the board of Juner concluded that it was opportune to take Juner public. The decision to go public has led to the discussion of several issues: (1) the choice of stock exchange, (2) the "justified" valuation based upon Juner's fundamentals and respective comparables, and (3) the methods Juner would adopt to maintain its growth rate and exceed investor expectations before and after the IPO.