Apotex Health Corp. announced the launch of its previously disclosed initial public offering (IPO) and the commencement of its investor roadshow following the filing of an amended and restated preliminary base PREP prospectus with securities regulators across Canada.
The Canadian pharmaceutical company expects the offering to raise approximately $1 billion in gross proceeds. The IPO is expected to consist of between 41.7 million and 50 million common shares priced between $20 and $24 per share.
The offering includes a treasury issuance by Apotex of between 35.4 million and 42.5 million shares, which is expected to generate approximately $850 million in gross proceeds for the company. In addition, certain existing shareholders are expected to sell between 6.25 million and 7.5 million shares, generating approximately $150 million in gross proceeds for those shareholders.
The selling shareholders are also expected to grant the underwriting syndicate an over-allotment option to purchase up to an additional 7.5 million shares. The option may be exercised for up to 30 days following the closing of the offering to cover over-allotments and support market stabilization activities.
The underwriting syndicate is being led by RBC Capital Markets, TD Securities, and Scotiabank as co-lead managers, joint global coordinators, and joint lead bookrunners. BMO Capital Markets and Jefferies are serving as joint bookrunners, with several additional financial institutions participating as co-managers.
Apotex said it has applied to list its common shares on the Toronto Stock Exchange. The listing remains subject to approval by the exchange, and the company noted that the TSX has not yet conditionally approved the application.
Headquartered in Toronto, Apotex is a global health company focused on expanding access to affordable medicines and health products. The company maintains a portfolio that includes generic pharmaceuticals, biosimilars, innovative branded medicines, and consumer health products. It operates internationally with regional offices in markets including the United States, Mexico, and India.
The company described itself as the largest Canadian-based pharmaceutical company and a key partner for pharmaceutical licensing and product acquisitions throughout the Americas.
The offering remains subject to regulatory approvals and the completion of final offering documentation. The securities have not been registered under the U.S. Securities Act and may not be offered or sold in the United States unless an applicable exemption from registration requirements is available.
