EQT’s Galderma Seeks to Raise $2.3 Billion in Swiss Listing
(Bloomberg) — Skincare business Galderma Group AG is looking to raise about $2.3 billion in what’s expected to be one of the largest listings in Europe this year, serving as a key test for the region’s initial public offering market.
The IPO in Zurich will comprise mainly new shares issued by Galderma and a smaller tranche of existing shares sold by owners including EQT AB, according to a statement on Wednesday.
Galderma makes prescription creams, wrinkle fillers and owns skincare brands like Cetaphil. Dermatology, it says, is the fastest-growing self-care market and the company targets revenue growth of as much as 10% this year.
“We see ourselves mainly as a self-care champion,” Chief Executive Officer Flemming Ørnskov said in a telephone interview. The feedback from investors “is it’s a very attractive company of size, and people really like the growth on both the top and bottom line.”
At $2.3 billion, the offering would be the biggest in Europe since Porsche AG’s $9.1 billion IPO in September 2022 and Switzerland’s largest since Landis+Gyr Group AG went public in 2017. It could happen before Easter, according to Ørnskov. Galderma plans to use the proceeds to pay down debt and invest in its pipeline, Ørnskov said.
EQT led a consortium that acquired Galderma for 10.2 billion Swiss francs ($11.5 billion) in 2019. It’s been exploring an IPO of the former Nestle SA unit since 2021 but put listing plans on hold after the global IPO market stalled last year amid heightened inflation and volatile markets.
Other Listings
Now, companies and their advisers are taking advantage of the pent-up demand for new stock issuance as European stocks hover near record highs. Investors clamoring for returns are also forcing private equity funds to monetize more assets.
CVC Capital Partners this month kicked off the listing of German perfume retailer Douglas that may raise as much as €1.1 billion ($1.2 billion). Buyout firm Permira is looking to list luxury Italian shoemaker Golden Goose and German fashion retail club Best Secret, Bloomberg News has reported.
Read More: Douglas Listing Boosts Hopes of European IPO Revival: ECM Watch
Galderma was founded in 1981 as a joint venture between L’Oreal SA and Nestle. The company, which runs four manufacturing sites, reported about $4.1 billion in net sales in 2023, its website shows.
Galderma’s skincare offering is led by Cetaphil, which includes moisturizers and sunscreens for damaged or sensitive skin. The company also markets Azzalure, a Botox competitor, which received approval from the US Food and Drug Administration for two injectables last year. One is a hyaluronic acid dermal filler aimed at adding volume under the eyes, and the other is used to plump up fine lines and wrinkles.
Goldman Sachs Group Inc., Morgan Stanley and UBS Group AG are the joint global coordinators of Galderma’s IPO.
–With assistance from Paula Doenecke and Phil Serafino.
(Updates with CEO comments from fourth paragraph)
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