Shares in Osh & Lomb climbed on the first trading day after the company was forced to reduce the second-largest listing of the year against the backdrop of volatile markets.
In the early afternoon, the company’s shares traded at $ 19.35 a share, a 7.5% jump in early trading on Friday, but still below $ 21 to $ 24 per share it had targeted before lowering its ambitions.
Bausch & Lomb, the company’s eye care unit formerly known as Valeant Pharmaceuticals, sought to raise up to $ 840 million on Thursday night, but eventually sold for $ 18 a share, raising $ 630 million.N.
Joseph Papa, CEO of Bausch & Lomb, said the deal “marks a tremendous milestone for Bausch & Lomb and an important step forward on the road to an independent company focused on eye health.”
Market volatility caused by Interest rates are rising And Russia’s war on Ukraine caused a sharp drop in U.S. listings this year, with only $ 3.3 billion raised, compared to more than $ 56 billion in the same period in 2021, according to Dealogic.
Gas group Excelerate Successfully raised $ 384 million last month, even though it enjoyed a unique positive environment for energy companies. Observers closely followed Bausch’s chances as a more representative test of investors’ appetite.
Bankers hoped the long track record of Bausch & Lomb’s profitability, which began as an optics store in upstate New York in the 19th century, would stand. However, the planned IPO coincides with a sharp turnaround in the broader stock market. Wall Street S&P 500 Index Decreased by 3.5 percent On Thursday.
Bausch & Lomb reported revenue of $ 3.8 billion in 2021, a 10% increase from 2020, but almost uniform compared to 2019. Net income was $ 193 million, though its profits will decline as it inherits some debt as part of a separation from the company Her mother. .
Valeant spent $ 8.7 billion to acquire Bausch & Lomb from the private equity group Warburg Pincus in 2013, on a long buying spree. Canadian society later rebranding As Bausch Health after a string of scandals over predatory pricing and accounting irregularities.
Bausch Health will remain a majority shareholder in Bausch & Lomb after the transaction. That said it Intends to sell or distribute Its share to shareholders, though the new independent company has warned in its prospectus that in its light “there is no obligation” to complete the distribution.
The prospectus also highlighted Bausch and Lombash’s exposure to the war in Ukraine. It generated $ 116 million in revenue in Russia last year, as well as smaller amounts in Ukraine and Belarus, and said it faces risks including lower demand, potential future sanctions, state-sponsored cyber security attacks and damage to reputation from continued operations in the region. .
Bausch & Lomb climbs in debut after downsized listing Source link Bausch & Lomb climbs in debut after downsized listing