Canada’s eye health care company Bausch + Lomb Corp. has priced its IPO below the marketed range to raise $630 million, dimming hopes of the market rebounding in the biggest listing in the U.S. in almost four months.
More into the IPO and the companies
In what is seen as a test of whether a profitable and stable business can help to break the ice for dozens of start-ups who are considering IPOs, Bausch + Lomb is one out of two businesses that have been spun out from Bausch Health Cos and going ahead with the IPO despite the Dow Jones industrial index witnessing the biggest drop since 2020.
According to Bloomberg News, the eye care and contact lens company sold 35,000 shares at $18 per share, much below the market price of $21-$24. The market capitalization of the optical goods company, which was established in 1853, came to $6.30 billion as per filings with the U.S. Securities and Exchange Commission.
Bausch Health Cos will get the proceeds of the shares. The share is expected to list on the New York stock exchange from Friday under the ticker BLCO. It will trade on the Toronto stock exchange under the symbol.
Based in Vaughan, Ontario, the company has reported a net income of $65 million and revenue of $3.8 billion in 2021. Apart from the contact lens and solutions include PureVision, Ocuvite, and Biotrue brands. Bausch + Lomb is also into making surgical tools and devices and ophthalmic pharmaceuticals such as glaucoma.
Known earlier as Valeant Pharmaceuticals International Inc., Bausch Health bought Beachcomb for $8.7 billion in 2013 from a group of investors, including Warburg Pincus.
Bausch Health is also planning to sell its skincare unit, Solti Medical, to pay off its earlier debts that run into billions. The company, which will keep its core pharmaceutical business, has around $23 billion in debt as of December 31.
Solta has not moved ahead with its proposed terms of its IPO despite filing with SEC in February. As per its filing, Solta posted revenue of $219 million and a net income of $72.8 million for nine months ending September 30, 2021.
According to Bloomberg data, Private Equity firm TPG Inc.’s offering in the U.S. this year was more than Bausch + Lomb’s offering with a listing of $1.1. billion.
The U.S IPOs were at the weakest currently since 2016 after a record-busting run last year. 116 companies raised $16.6 billion before the Bausch + Lomb IPO. This was more than ten times the amount raised by 471 companies in 2021 around the same time.
Other companies have started to file their IPOs, like Steinway Musical Instruments Holdings Inc., the makers of grand pianos. Chobani Inc., the Yoghurt Maker, and social media company Reddit Inc.
