Apotex Health Corp. disclosed that it has filed a preliminary prospectus with Canadian securities regulators in connection with an initial public offering of common shares to be listed on the Toronto Stock Exchange. The offering is structured to include both newly issued shares from Apotex and existing shares to be sold by certain shareholders, with the controlling shareholder SK Capital Partners identified among those planning to sell existing stock.
At this stage the company has not determined the number of shares that will be offered nor the price per share. Apotex has applied for a listing of its common shares on the TSX, but the filing notes that approval from the exchange remains contingent on the company meeting the exchange's standard listing requirements. No conditional approval has been granted by the TSX.
The banking syndicate leading the deal is headed by RBC Capital Markets, TD Securities Inc., and Scotiabank, which are serving as co-lead managers, joint global coordinators and joint lead bookrunners. Additional underwriting roles include BMO Capital Markets and Jefferies Securities, Inc. as joint bookrunners. A broader group of co-managers comprises 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.
Legal counsel for the transaction has been named on both sides. Goodmans LLP is acting as Canadian legal counsel to Apotex, while Stikeman Elliott LLP is serving as Canadian legal counsel to the underwriters. For U.S. legal matters, Kirkland & Ellis LLP represents Apotex and Skadden, Arps, Slate, Meagher & Flom LLP is acting as U.S. counsel to the underwriters.
Apotex is headquartered in Toronto and operates in multiple markets. The company manufactures generic, biosimilar and branded pharmaceuticals and also produces consumer health products. It maintains regional offices in the United States, Mexico and India, and describes itself as the largest Canadian-based pharmaceutical company.
Summary and context - the filing confirms Apotex's intent to pursue a public listing in Canada while allowing current shareholders, including its controlling owner, to sell existing shares as part of the offering. The timing and economics of the IPO will depend on later decisions about share quantity and pricing, and on the TSX granting listing approval after review.