Business Irish

Thursday 19 September 2019

Proceeds from Uniphar IPO fail to meet €150m target

Uniphar chief executive Ger Rabbette. Photo: Brendan Lyon/Imagebureau
Uniphar chief executive Ger Rabbette. Photo: Brendan Lyon/Imagebureau
Ellie Donnelly

Ellie Donnelly

Irish pharmaceuticals group Uniphar has raised a total of €139m from its initial public offering, below its highest target of €150m.

The company floated at a price of €1.15 on the Euronext Growth Index in Dublin and London's Aim market last month, raising €135m.

Last month’s placing included an over-allotment of shares granted to Davy, as “Stabilisation Manager,” which, if exercised in full had the potential to raise the gross proceeds of the IPO to €150m.

However, today the group said that just €4.39m was raised following the exercise of the shares.

Money raised from the IPO will be used to fund extra capital expenditure and working capital for growth of the enlarged business.

The group's strategy is to double earnings before interest, tax, depreciation and amortisation (ebitda) in the five years to 2023.

Prior to the IPO, Uniphar's 1,100 owners were largely made up of the owners of independent pharmacies in Ireland, who are also core customers.

According to the company's own website, Uniphar's revenues last year were €1.55bn, gross profit was €159.6m, and earnings were €46.3m on a pro-forma basis. The firm has more than 2,000 employees.

The business had a turnover of €1.26bn, earnings of €19.4m and debts of €50m at the end of its 2017 financial year, the latest 12 months for which accounts have been filed.

The bulk of revenue is generated in Ireland, where Uniphar is the biggest pharmaceutical wholesaler and distributor.

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