Eye care company Bausch + Lomb priced its initial public offering at $18 a share, below its expected range of $21 to $24, after a day of bloodbath in the stock market that battered major indexes.
The company sold 35 million shares to raise $630 million at a $6.3 billion valuation.It was expected to be valued at more than $8 billion but was hit by a rate-driven market on Thursday.
Shares will begin trading on the New York Stock Exchange and Toronto Stock Exchange later Friday under the ticker “BLCO.”
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Matthew Kennedy, an analyst at pre-IPO research and research provider Renaissance Capital, said the company is being spun out of healthcare company Bausch Health Inc. BHC, -3.81% seen as important to the IPO market test.IPO-focused ETFs.
“The second quarter has been brutal for IPOs so far, as rising interest rates have had a particularly large impact on the intrinsic valuations of growth stocks,” he said.”The big drop in prices is also related to the overvaluation we saw last year. So the stock market had to fall further.”
The deal was the second-biggest of the year behind private equity firm TPG Inc. TPG, -2.54%, which raised $1 billion in January, about 30 years after it was founded as Texas Pacific Group.That company is valued at $9 billion.
Morgan Stanley and Goldman Sachs are lead underwriters for a consortium of 20 banks involved in the deal.Proceeds will all go to the selling shareholders, a wholly-owned subsidiary of Bausch Health, according to the filing.
BLCO’s 2021 net profit is $182 million on revenue of $3.765 billion.This compares to a loss of $18 million on revenue of $3.412 billion in 2020.
Bausch + Lomb was founded in 1853 by John Jacob Bausch and Henry Lomb as a small optical shop in Rochester, NY
“Our mission is simple but powerful: to help you see better and live better,” the prospectus summary said.
Bausch + Lomb manufactures contact lenses, intraocular lenses, medical devices, surgical systems, vitamin and mineral supplements, lens care products, prescription eye medications and over-the-counter eye care consumer products.
It has about 4,200 employees in 24 factories in 10 countries.The R&D team is about 850 people, and more than 260 new products have been launched since 2017.
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According to the prospectus, the company developed the world’s first soft contact lens, launched the first contact lens cleaning product, launched the first silicone hydrogel contact lens, and launched a patented ophthalmic vitamin to market.
The global eye care market was worth nearly $50 billion in 2019, and Bausch & Lomb expects the market to grow at a compound annual growth rate of nearly 4 percent to $63.2 billion by 2025, the company said.
This growth will be driven by factors such as an aging global population, rapid growth of the middle class in emerging markets, increasing prevalence of diabetes and improved access to healthcare practitioners.
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The company is one of two Bausch Health spin-offs as it works to ease the huge debt load it took on when it became known as Valeant and made a massive acquisition.The second is Solta Medical, which is Bausch’s skincare business.
Renaissance IPO ETF IPO, -3.28% is down 42% so far in 2022, while S&P 500 IPO, -3.28% is down 13%.
More than 80 companies have been added to a list compiled by the Securities and Exchange Commission that could be delisted if their financial accounting is not transparent enough.
Post time: May-06-2022
