June 25 (SeeNews) - Dutch-registered livestock animal health company Huvepharma BV, owned by Bulgarian investor Kiril Domuschiev, said it has set a price range of between 20.00 euro and 25.75 euro per share for its planned initial public offering (IPO), seeking a valuation of up to 4.5 billion euro ($5.36 billion).
The offering will consist of a primary and a secondary component in which Huvepharma will be selling some 15 million newly issued shares in the transaction, while the company’s sole shareholder, Bulgaria-registered Advance Properties, will be selling roughly 11.1 million existing shares, Huvepharma said in a press release on Thursday.
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The selling stockholders have also granted underwriters a 30-day option to purchase about 3.5 million more units to cover overallotments, if any.
The pharmaceutical company said it intends to use the proceeds from the offering to fund and accelerate its growth capital expenditures as well as to its cut debt that stood at about 474.1 million euro as of December 31, 2020. The gross proceeds from the floatation are expected to be of 300 million euro at the bottom and up to 386 million euro at the top end of the marketed price range.
The offer period started on June 24. The pricing and start of conditional trading on Euronext Amsterdam is expected to commence on July 1. The offer consists solely of private placements to certain institutional investors in various jurisdictions, including the Netherlands, the company said.
Huvepharma first diclosed the listing plan on June 14.
Amsterdam-headquartered Huvepharma is focused on developing and manufacturing animal and human health and nutrition products, claiming to be the sixth largest company globally in animal health products for livestock. It operates production sites in Italy, France, Bulgaria and the US across a total of 13 locations.
The business booked revenue of 588 million euro in 2020, up from 548 million euro in 2019. Its earnings before interest, tax, depreciation and amortisation (EBITDA) in the same period rose to167 million euro from 127 million euro, with a 2020 EBITDA margin of 28.4%.
Huvepharma’s parent company is owned by Bulgarian investors Kiril and Georgi Domuschiev, who are the ultimate controlling parties, according to the company's most recent financial statement.
($ = 0.838151 euro)