Recipharm has confirmed that it is making plans to go public this year, citing a desire to finance “rapid growth” and acqusitions as the motivation.
The contract manufacturing organisation’s (CMO) initial public offering (IPO) was detailed in a report in Swedish finance publication Dagens Industri earlier today .
The confirmation comes just days after Recipharm announced that it had asked banks SEB and Carnegie to help it consider its options regarding a potential IPO.
CEO Thomas Eldered told Dagens Industri about the potential IPO earlier today, explining that that: “What drives us into the stock market is that we want to do a rights issue in connection with the listing. We need capital to finance rapid growth for the company.”
Eldered added that while he and Recipharm co-founder Lars Backsell will remain as majority shareholders “banks are talking about the need to create liquidity in the shares, if the therefore becomes so we need to sell a little bit so be it.”
Recipharm confirmed the plan for Outsourcing-pharma.com, telling us that: "We have now initiated a process for a possible listing on the Stockholm Stock Exchange," but again injected a not of caution by adding that "no final decision is yet made on this."
The firm added that: "We would use the proceeds for expansion through both acquisition and in some cases other investment. Clearly there is a lot of consolidation potential in the industry and it is our intension to be one of the leading consolidators. If we were to do an IPO, the current owners would retain a majority shareholding."
Observers "familiar with the matter" told Reuters last week that Recipharm is worth 2.5 billion crowns ($383m) including debt. In 2012 the CMO had sales of 2.1bn crowns and earnings before interest, taxes, depreciation and amortisation (EBITDA) of 281m.
At present, Recipharm employs around 1,600 people.