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Galenica launches IPO of Galenica Santé and sets price range

Friday, 24 March 2017

The Galenica Group today announced the launch of the initial public offering (IPO) of Galenica Santé and its listing on SIX Swiss Exchange. The publication of the offering memorandum and the start of the book-building process will take place on Monday, 27 March 2017.

The share capital of Galenica Santé is divided into 50,000,000 ordinary registered shares with a nominal value of CHF 0.10 each. The price range for the offered shares has been set at CHF 31.00 to CHF 39.00 per share, implying a total market capitalisation of Galenica Santé of approximately CHF 1,550 million to CHF 1,950 million.
The IPO consists of 37,500,000 ordinary registered shares (the “Offering”) plus an over-allotment option of up to 5,625,000 shares.

The placement volume amounts to approximately CHF 1,337 million at the minimum to CHF 1,682 million assuming the over-allotment option is exercised in full.
Galenica Group will receive all of the net proceeds from the sale of the offered shares. Together with the net debt assumed by Galenica Santé of around CHF 350 million, the Galenica Group is therefore in a position to more than refinance the acquisition of Relypsa, even if the over-allotment option is not exercised.

The free float of Galenica Santé is expected to amount to 75% of the shares before exercise of the over-allotment option and 86.25% if the over-allotment option is exercised in full. After the listing and assuming the over-allotment option is exercised in full, Galenica Group will hold approximately 13.75% of the share capital. The first day of trading of Galenica Santé on SIX Swiss Exchange is expected to be on or around 7 April 2017.

Subject to the expected results 2017, Galenica Santé confirms its intention to pay out a dividend of CHF 80 million in 2018 for the financial year ending 31 December 2017. Based on the expected strong cash flows and its intention to keep the mid-term debt ratio to around 2x EBITDA, Galenica Santé also affirms its planned future dividend policy with a pay-out ratio of over 65% of consolidated net profit (excluding the effects of IAS 19).

At the Annual General Meeting on 11 May 2017, shareholders will vote on the name change of Galenica Group to Vifor Pharma Group.

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Galenica Ltd.
Media
Untermattweg 8
3027 Bern

Tel. +41 58 852 85 17
Fax +41 58 852 85 58

Contact

Galenica Ltd.
Investors
Untermattweg 8
3027 Bern

Tel. +41 58 852 85 29
Fax +41 58 852 85 35