Rottapharm cancels its listing on the Italian Stock Exchange. The Italian pharmaceutical group announced its decision yesterday, in the last day of the global offering to the investors (download here the press release). On sale were shares from unique shareholder’s portfolio Fidim srl, the holding of the founder Rovati family.
The statement says that ” in the context of the global offering of its shares by Fidim srl, Fidim, in its capacity as selling shareholder decided, in agreement with the joint global coordinators and the Italian lead manager, that the conditions have not been met for the execution of a transaction that reflect the current intrinsic value of the company, also in light of the unfavorable Italian and international market conditions, which determined a rapid change in the expectations of investors on European assets and in particular on Southern European assets. As a result of such external events, Fidim srl decided to revoke the global offering for the time being”.
So even if Rottapharm’s business has a strong track racord, investors were rather cold on the offer due to a true change in financial markets perception of periferal Europe assets and to a too crowded ipos market: in the last few months many companies listed on the European stock exchanges and now investors are quite selective and in this quite competitie situation can easlly ask for lower valuations.
Rottapharm trading debut was expected next July 16th and price range for its share had been fixed between 7.25 and 9 euro per share for a market capitalization ranging from 1.45 to 1.8 billion euros (see a previous post of BeBeez).
It’s the second time that the Rovati family tries to list Rottapharm. Two years ago founder Luigi Rovati first entered exclusive negotiations with private equity funds Clessidra and Avista (beating proposals from Advent, Carlyle and Charterhouse), for selling them a 25 pct stake each, and then changed its mind and announced he was aiming to list the company at the Italian Stock Exchange. Finally Rovati didn’t do any of the previous moves and in Novembre 2012 simply decided to refinance its financial debt issuing 400 million euros of high yield bonds.
The group produces both prescription and over the counter drugs as well as healthcare products (for example it owns Saugella and Babygella brands) and integrators.