3rd November 2016

ConvaTec to raise £1.5bn with its flotation on the London Stock Exchange

Medical products manufacturer ConvaTec has revealed it is set to raise about £1.5bn with its flotation on the London Stock Exchange.

The company, founded in 1978, is a developer, manufacturer and marketer of innovative medical products with a focus on therapies for the management of chronic conditions.

ConvaTec, which is backed by private equity firms Avista Capital Partners and Nordic Capital, announced plans to float on the main market of the London Stock Exchange earlier this month.

A price of 225 pence per share has now been set for its initial public offering (IPO), giving a market capitalisation of £4.39bn when trading starts on 31 October 2016.

The offer represents about one third of the company’s shares and ConvaTec will receive gross proceeds of £1.47bn. The funding will primarily be used to redeem or repay certain of its current borrowings.

Paul Moraviec, chief executive of ConvaTec, said: “We are very pleased by the investor interest in our IPO and we are delighted to welcome our new shareholders.

“We have implemented a clear growth strategy which is now showing solid results through product innovation, new market entry and investments in direct-to-consumer engagement, in addition to which we are implementing a margin improvement program.

“We look forward to the benefits which a public listing will create for our company and for our customers, who rely on ConvaTec’s products and services.”

ConvaTec has more than 9,000 employees and conducts business in more than 100 countries. It has its corporate headquarters in Reading, a factory in Deeside and other UK operations in Tredegar, Sunderland, Basingstoke, Stirling, Cheltenham, Lincoln, Nottinghamshire, South Shields, Croydon and Dartford.

Peel Hunt is acting as co-lead manager on the IPO alongside RBC. The joint global coordinators and joint bookrunners are Goldman Sachs International, Bank of America Merrill Lynch and UBS. Other joint bookrunners are Credit Suisse, Deutsche Bank, JP Morgan Cazenove and Morgan Stanley.