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Secondary offering is on the cards for PPD
Posted on Tuesday, 15 September 2020 10:27
Shareholders of PPD are cashing in on some of their investment via a secondary offering potentially worth much as USD 1.43 billion.
Hellman & Friedman, Carlyle Group, GIC and Abu Dhabi Investment Authority’s Platinum International Investment Holding are selling a total of 38.00 million existing stocks.
They have provided the underwriters, namely Morgan Stanley, Barclays, JPMorgan and Goldman Sachs, with a 30-day overallotment option for an additional 5.70 million scrips.
Hellman & Friedman will pare its 45.4 per cent stake to as low as 38.4 per cent, if the green shoe is exercised, by selling as many as 24.51 million shares in the offering.
Carlyle Group could offload up to 10.65 million stocks, representing a 3.1 per cent, to cut its own holding from 19.1 per cent to 16.0 per cent.
GIC and Abu Dhabi Investment Authority’s Platinum are each putting 4.10 million scrips on the block to trim their own respective stakes of 7.3 per cent to 6.2 per cent, again, assuming the overallotment is exercised.
PPD is a global contract research organisation that has conducted 2,100 clinical trials over the last five years.
Over the same timeframe, the group’s laboratory scientists have completed more than 57,000 pharmaceutical development projects and worked with more than 7,600 compounds.
It generated total revenue of USD 2.058 billion in the six months ended 30th June 2020 (H1 2019: USD 1.96 billion).
PPD commanded a market capitalisation of USD 11.79 billion by the time the bell rang yesterday.
The group’s stocks have fluctuated between a high of USD 34.99 and a low of USD 10.61 since listing on Nasdaq in February following an initial public offering worth USD 1.60 billion.
Zephyr, the M&A database published by Bureau van Dijk, shows this floatation is the biggest targeting the pharmaceuticals, biotechnology and life sciences sectors announced so far this year.
According to Zephyr, the secondary offering could be the fifth-biggest such deal announced globally in 2020 to date, based on the maximum possible value of USD 1.43 billion mentioned in the prospectus.
© Zephus Ltd