Tuesday 17 September 2019

Uniphar IPO fails to reach pharma group's €150m goal

Medicine: Uniphar supplies pharmacies
Medicine: Uniphar supplies pharmacies
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 on London's Aim market last month, raising €135m.

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Last month's stock 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, yesterday 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 stakeholders 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 company has more than 2,000 employees within its ranks.

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 officially filed.

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

Shares in the group were down 1.5pc in early trading yesterday.

Irish Independent

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