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One of the world’s largest dermatology companies is aiming to raise $2.3bn in an initial public offering on the Swiss stock exchange, in the latest sign that Europe’s listings markets is finally gathering momentum.
Galderma, which sells everything from acne treatments to injectables for eliminating wrinkles, could list as soon as this month, chief executive Flemming Ornskov told the Financial Times on Wednesday.
Most of the proceeds from the IPO will be used to repay and refinance debts at Galderma, which the FT has previously reported could be valued at about $20bn.
Having started life as a joint venture between Nestlé and L’Oréal, Galderma was acquired by a consortium led by Swedish private equity group EQT in a $10bn deal in 2019.
“If I look at the company’s performance, the sectors we’re in and the markets overall, together with the owners we decided this was a very opportune time to go,” Ornskov said. “This would also allow us to de-lever the company.”
The announcement by Galderma, which is headquartered in Zug, Switzerland, comes in the same week as the CVC-owned perfume retailer Douglas said it intends to list in Frankfurt this quarter.
Signs of a pick-up in the pace of European IPOs comes after a prolonged slowdown. Last year, European IPO proceeds fell to their lowest level since 2012, according to data compiled by consultancy PwC.
Galderma’s growth has been driven by specialist skincare products such as Cetaphil, treatments for acne, rosacea and sensitive skin. The group has three “blockbuster franchises” that generate more than $1bn of annual sales, and aims to add another in therapeutic dermatology.
The company generated record sales of more than $4bn last year, up almost 9 per cent on the previous year. Earnings before interest, taxes, depreciation and amortisation were $942mn last year, it added.
“We’re clearly the pure-play category leader in dermatology,” Ornskov said. “It was obvious to us that given the size and scale of this business it would be an excellent candidate for an IPO.”
A small portion of the IPO will include existing investors selling some of their stakes. Alongside EQT, Galderma’s investors include Singapore’s GIC and the Abu Dhabi Investment Authority.
Goldman Sachs, Morgan Stanley and UBS are acting as joint global coordinators for the IPO.
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