Key Takeaways:
Canadian drugmaker Apotex Health plans to raise as much as C$1.2 billion ($868 million) in a Toronto IPO, a deal that could revive a listing market that has seen only a handful of offerings in recent years.
"This is the kind of large-scale listing the TSX has been waiting for," said Tom Brennan, IPO and M&A analyst at Edgen. "A successful Apotex debut could open the door for other companies that have been sitting on the sidelines."
The company expects to offer 41.7 million to 50 million shares at C$20 to C$24 apiece, generating gross proceeds of about C$1 billion. Apotex is raising roughly C$850 million through new shares while existing shareholders sell about C$150 million of stock. Revenue has grown about 8% over the past four fiscal years, driven by its core generics business and expansion into specialty generics, brands, and biosimilars.
The IPO would be one of the largest in Canada since 2021 and could signal a thaw in a market where companies have avoided listings to seek capital elsewhere. Xanadu Quantum Technologies went public earlier this year through a SPAC merger, raising about $300 million on both Nasdaq and the TSX. Underwriters on the deal include RBC Capital Markets, TD Securities, Scotiabank, BMO Capital Markets and Jefferies.
Apotex serves clients across about 70 countries in North and South America, focusing on first-to-market generic products and higher-value areas such as specialty generics and biosimilars. The company's revenue growth of 8% over the past four fiscal years reflects steady demand for generic pharmaceuticals, a sector that has benefited from cost pressures on healthcare systems globally.
Renewed economic confidence and a rising TSX have contributed to fresh interest in public listings, with companies in technology, natural resources and other sectors revisiting their plans. A successful Apotex offering could encourage more issuers to test the market, potentially reversing a multi-year drought in Canadian equity capital markets.
This article is for informational purposes only and does not constitute investment advice.
