Apotex Health Corp. has formally opened its initial public offering and initiated a roadshow after submitting an amended preliminary prospectus to Canadian securities regulatory authorities.
The proposed offering comprises between 41.7 million and 50 million common shares, with an indicated price range of $20.00 to $24.00 per share. On that basis, the company is aiming for roughly $1 billion in gross proceeds.
Under the structure disclosed in the prospectus, Apotex plans to issue 35.4 million to 42.5 million new common shares to raise approximately $850 million. In addition, holders of existing shares intend to sell 6.25 million to 7.5 million shares, representing about $150 million in proceeds to selling shareholders.
To provide additional flexibility for the underwriters, the selling shareholders have granted an over-allotment option allowing the underwriters to buy up to a further 6.25 million to 7.5 million shares at the offering price. That option may be exercised within 30 days after the closing of the offering, and is intended to cover over-allotments and to assist with market stabilization.
A syndicate of banks will manage the offering. RBC Capital Markets, TD Securities Inc., and Scotiabank are listed as co-lead managers, joint global coordinators and joint lead bookrunners. BMO Capital Markets and Jefferies Securities, Inc. are acting as joint bookrunners. Additional firms serving as co-managers include CIBC Capital Markets, ATB Cormark Capital Markets, Desjardins Capital Markets, National Bank Capital Markets, MUFG, Raymond James, Bloom Burton Securities Inc., Canaccord Genuity Corp., Stifel and Paradigm Capital Inc.
Apotex has filed an application to list its common shares on the Toronto Stock Exchange, subject to the exchange granting conditional approval under its original listing requirements. The TSX has not yet provided conditional approval to the listing application.
The company notes that the amended preliminary prospectus remains subject to completion and potential amendment. It also states that no securities regulatory authority has approved or disapproved the contents of the offering materials.
Conclusion - Apotex has taken formal steps toward going public by filing an amended preliminary prospectus, setting the terms of a roughly $1 billion offering that combines new issuance with a secondary sale, engaging a broad underwriting group, and seeking a listing on the Toronto Stock Exchange. Key procedural milestones remain, including the potential exercise of an over-allotment option and TSX approval of the listing application.