• 25/07/2024 03:28

Swiss Galderma announced plans to hold one of the largest IPOs in Europe

The Swiss pharmaceutical company Galderma announced its intention to conduct an initial public offering (IPO) on the Swiss stock exchange. This IPO could become one of the largest in Europe this year, note Reuters and Bloomberg.

Swiss Galderma announced plans to hold one of the largest IPOs in Europe

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What is known

Galderma plans to raise $2.3 billion during the IPO. The company’s CEO Flemming Ornskov said that This listing could be the largest since Porsche's IPO in 2022: the automaker raised $9.1 billion.

The IPO could take place before Easter, Ornskov clarified: in Switzerland, according to Catholic tradition, it is celebrated on March 31.

It is expected that the majority of Galderma’s offer will consist of new shares, and to a lesser extent, already issued securities, follows from the company’s statement. The organizers of the placement are Goldman Sachs Group, Morgan Stanley and UBS Group.

Flemming Ornskov declined to name Galderma's potential valuation, Reuters writes. The agency's source – an unnamed fund manager – suggested that Galderma's capitalization after the IPO could be $20 billion. Galderma is owned by a consortium of investors led by the Swedish investment fund EQT, which manages assets worth €232 billion. The company was previously a division of Nestle SA and was acquired in 2019 for 10.2 billion Swiss francs ($11.5 billion).


Galderma had been considering the possibility of entering the stock exchange since 2021, but postponed these plans after the global IPO market has stalled due to increased inflation and market volatility, notes Bloomberg.

In February, Galderma reported an increase in net sales in 2023 by 8.5% year-on-year, to $4 billion. The company's EBITDA reached $942 million, which 21.4% more than a year earlier. In 2024, Galderma intends to increase net sales by 7-10%.

Currently, companies and consultants are taking advantage of the accumulated demand for new equity issues as European markets fluctuate near record highs, Bloomberg writes. In addition, investors are demanding that funds monetize more assets in pursuit of profitability, the agency notes.


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