(Bloomberg) -- Stada Arzneimittel AG is sounding out investors for its initial public offering that could potentially raise around €1.5 billion ($1.6 billion) of fresh capital for the consumer health-focused drugmaker, people familiar with the matter said.
The company has been seeing prospective investors in Europe and the US in recent weeks, said the people, who asked not to be identified as the information is private. The size of the deal could increase depending on whether Stada’s private equity firm owners Bain Capital and Cinven opt to sell some of their existing shares in the offering, the people said.
At €1.5 billion, Stada’s IPO would be Germany’s largest since Porsche AG’s €9.1 billion ($9.6 billion) listing in September 2022, according to data compiled by Bloomberg. Such a deal would also rank as one of the biggest health-care transactions in Europe in recent years and cap a prolonged effort by Bain and Cinven to pursue a sale or listing of the business.
The buyout firms have been focusing on the drugmaker’s IPO after negotiations over a sale to rival investment firm GTCR cooled. JPMorgan Chase & Co., Morgan Stanley, Deutsche Bank AG and Goldman Sachs Group Inc. were tapped to lead the first-time share sale, while other banks were added as bookrunners, Bloomberg News has reported. The IPO could kick off as soon as in the first quarter, the people said.
Deliberations are ongoing and details including size and timeline could still change, the people said. The political turmoil in Germany and a snap election early next year could also bring uncertainty to the IPO plans, they added. Representatives for Bain, Cinven and Stada declined to comment.
A growing number of German firms are gearing up to go public in the coming months despite worries over Europe’s largest economy, as pressure builds on buyout groups and corporations to realize value for investors. Pfisterer Holding SE, a German manufacturer of high-voltage cable insulators, is considering an IPO in Frankfurt next year, Bloomberg News reported this month. Online car-parts dealer Autodoc DE is also seeking to list in 2025.
Stada manufactures and sells a range of products such as consumer health-care items, generic drugs and specialty medication for rare and chronic diseases. Its brands include Grippostad, which helps treat colds and flu infections, and Hirudoid cream for bruises and hematoma.
Bain and Cinven agreed to buy Stada for €5.3 billion in 2017, a deal that gave them control of one of Europe’s last independent generic-drug businesses. The business has since grown through several acquisitions.
--With assistance from Eyk Henning and Abhinav Ramnarayan.
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