The Swiss skincare company has been studying the possibility of going public for several years. Will their dreams of a Galderma IPO come true anytime soon?
Let’s find out.
Galderma IPO Timeline
Back in October of 2019, the privately-held Swiss skincare group Galderma first debuted as the biggest independent dermatology company in the world.
The acquisition was led by a council made up of EQT AB, a Swedish investment firm that currently owns Galderma, PSP Investments, and other renowned institutional investors.
A couple of years after this acquisition, Galderma continued to increase its valuation. It was even able to bolster its portfolio in November of 2021 by acquiring California-based skincare company Alastin. This marked Galderma’s first US buy, which helped launch its presence in the country.
The next step was when the investor consortium hired two banks to arrange an initial public offering (IPO). The move aimed to put the business at a value of around 20 billion Swiss francs, or slightly more than $21 billion.
The deal would have been the largest in Switzerland since 2000!
However, in May 2022, the group was forced to delay its listing ambitions due to the soaring interest rates. It was also a result of global economic instability that came shortly after the invasion of Ukraine.
Then, a year later, they gave it another go. At that time, EQT thought they’d finally be able to schedule an IPO in the spring of 2023.
Yet, unfortunately, due to various concerns that hit the banking sector, their plans for filing for an IPO were once again derailed.
This caused the company to step back and re-evaluate its efforts to pay down its debt.
Nonetheless, its 2022 revenue continued to grow. Its total sales earnings for that year came to over $790 million with an annual growth rate of nearly 14%.
The latest news is that this past June, management gave a statement about its current financial state. In their recent release, they said that Galderma has raised nearly $1 billion via private share placements. Most of these placements belong to management, shareholders, and unnamed external investors.
According to Galderma, the company will use the proceeds to reinforce its balance sheet. Having a fool-proof balance sheet shows that it has the resources to remain financially stable regardless of the type of economy. The proceeds will also stimulate the organization’s financial growth, which is expected to increase between 6% and 9% in net sales.
This deal is a testament to the faith and conviction shareholders have in Galderma and its stock value. It’s also a way for the company to buy time in the hope that the IPO will improve in the coming months.
Even though management remains adamant about pursuing its plans to go public in the near future, no Galderma IPO dates have been set. Yet, according to various sources, it seems likely it’ll be held sometime in 2024.
To Sum Up
Despite all the recent snags that have prevented it from hitting the market, the goal of the skincare conglomerate is to follow through with the IPO. Yet, management doesn’t plan on stopping there, they have goals to make Galderma the world’s leading dermatology company.
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