Overview
- Apotex filed a preliminary prospectus on May 28 and on Monday disclosed plans to offer 41.7 million to 50 million shares at C$20 to C$24 targeting about C$1 billion in gross proceeds with an upside to C$1.2 billion depending on demand.
- The deal is structured as roughly C$850 million of new shares and about C$150 million of secondary stock sold by existing holders with controlling shareholder SK Capital expected to monetize part of its stake.
- Apotex reported about C$3.5 billion in revenue and C$374 million in earnings and said it will use proceeds from the treasury portion to reduce debt and support its push into specialty generics, brands and biosimilars.
- A syndicate led by RBC Capital Markets, TD Securities and Scotiabank with BMO Capital Markets and Jefferies as joint bookrunners has been named to underwrite the offering.
- The company’s move follows an April partnership with Cumberland Pharmaceuticals and is being watched as an early test of renewed appetite for large listings on the TSX with pricing expected the week of June 8 and closing the following week.