SDAX candidate: Dermapharm brings 25% percent to the stock exchange
Berlin — The initial public offering of Dermapharm has started. The offer period runs until February 8. The manufacturer has set a range of 26 to 30 euros. The total volume of the offering is thus expected to be around EUR 350 to 404 million. Since Wilhelm Beier (photo), the company’s CEO, only wants to place 25 percent of the shares, he could make a good cut compared to the sale planned in 2016.
A total of 13.455 million shares are to be offered to investors. Of these, 3.84 million will come from a capital increase and 7.86 million from Beier and his family. In addition, an over-allotment option (greenshoe) for 1.755 million shares owned by the company founder is planned. Should all shares be sold, the free float would amount to approximately 25 percent. Dermapharm would thus be valued at 1.4 to 1.6 billion euros. The planned sale to financial investors, which was later cancelled, was worth 1.1 billion euros a year ago. According to media reports, the financial investors BC Partners and Nordic Capital each offered slightly more than one billion euros. .
The money raised in the IPO — around 100 to 115 million euros from the capital increase — is to be used to expand a production facility, and a new production plant is also to be built in Austria. Dermapharm also intends to expand internationally. Further acquisitions are planned, as well as branches in the Benelux countries and in the Czech Republic and Slovakia. For share buyers, 50 to 60 percent of profits are to be paid out as dividends in the very first year.
New products in the pipeline
New products are also spurring expansion, with 40 currently in the planning and implementation stages. Of these, 28 are to be brought to market by 2023. In order to make itself look good for the IPO, Dermapharm acquired two companies, Trommsdorff and Strathmann, at the end of last year. Recently, Bio-Diät Berlin has also become part of Dermapharm.
Dermapharm manufactures off-patent drugs (generics) and sells them primarily in Germany, a market which in and of itself can be considered very solid, albeit competitive. The vitamin D preparation Dekristol 20,000 I.U. accounted for around 7.5 percent of sales in 2016.