EQT’s Skincare Firm Galderma Sets Terms for $2.6 Billion IPO
(Bloomberg) — Skincare company Galderma Group AG set the price range for a 2.3 billion Swiss-franc ($2.6 billion) initial public offering, in what would be the largest listing in Europe since that of Porsche AG in 2022.
The shares are being marketed at 49 to 53 Swiss francs apiece through March 20, the EQT AB-backed company said in a statement, with the stock set to start trading two days later. Based on the offer price range, Galderma will have an implied market capitalization of up to 12.6 billion francs.
Including debt, Galderma would be valued at $16.4 billion to $17.3 billion, according to people familiar with the matter.
The IPO marks a long-awaited revival of the region’s listings market, which has been dragged down by weak investor appetite amid rising rates and inflation. The total value of IPOs announced this year has already more than doubled the $2.2 billion raised in the first quarter of 2023, according to data compiled by Bloomberg.
With the broader European stock markets notching up new records, German perfume retailer Douglas also set IPO price range this week.
Galderma’s IPO has been in the works since 2021 but it was put on hold due to volatile markets.
The Galderma offering on Wednesday had gathered demand in excess of the full deal size within an hour of orders being opened for the IPO, according to terms of the deal seen by Bloomberg News.
Galderma, which was founded in 1981 as a joint venture between L’Oreal SA and Nestle SA, was acquired by an EQT-led consortium for 10.2 billion francs in 2019. Galderma is targeting gross proceeds of nearly 2 billion francs, which it will use to strengthen its balance sheet and pay down debt.
EQT will raise about 15 million francs in the IPO, with the option to sell more shares via a greenshoe offering. Abu Dhabi Investment Authority and Auba Investment Pte are also looking to sell shares through the greenshoe.
About 20.8% to 22.1% of the shares in the company are expected to be available for trading.
Galderma skincare offering is led by Cetaphil, which includes moisturizers and sunscreens for damaged or sensitive skin. The company also offers a range of injectable products including a Botox competitor. Last year, it bought Alastin, a developer of clinically tested anti-aging products dispensed via physicians.
(Updates with increase in IPOs from last year in fourth paragraph. The currency of the enterprise value was corrected in an earlier version of this story.)
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