Galderma’s float on Swiss Exchange signals EU’s IPO resurgence

08 Mar 2024 --- Galderma’s confirmed plans to list on the SIX Swiss Exchange could be Europe’s largest since Porsche went public in 2022. In its floatation on the Swiss stock exchange later this month, the skin care giant will seek to raise approximately US$2.3 billion.

Sources say the skin care company could be aiming for US$17–20 billion but CEO Flemming Ornskov would not divulge details at a recent press conference.

“The outlook is very strong for 2024 and mid-term, and together with the owners, we feel this is a very good time to take the next natural step for a company that is already run as if it was a public company by actually going public,” he commented.

“If I look back, since 2019 until now, we’ve had a few ups and downs with COVID and others, and the company has continued to perform, outperform the market and gain market share.”

The Galderma portfolio includes clinically endorsed skin care brands Cetaphil and Alastin.Ornskov noted that EQT Partners will remain a major investor in Galderma after the IPO. However, the exact stake has not yet been decided.

Record year for Galderma
Starting off as a joint venture between L’Oréal and Nestlé, the now EQT-owned enterprise holds a portfolio bridging pharma and beauty, which includes clinically endorsed skin care brands Cetaphil and Alastin.

The Galderma suite also encompasses injectable aesthetics as well as therapeutic dermatology solutions, including muscle relaxants, fillers and creams for addressing skin problems like rosacea.

Last year, the company saw sales cross US$3 billion in the first three quarters of the year, its highest recorded. Net sales jumped 8.9% year-over-year in the first nine months, with noticeable growth in international markets like Latin America and Asia, including China, India and Mexico.

The company also used the proceeds from the US$1 billion private placement of shares to deleverage its business last year, a key goal for many companies trying to avoid or limit exposure to a high-interest rate environment.

The Swiss skin care group initially paused plans for an IPO in 2023, saying it would use the money obtained from the private placement to boost its balance sheet. Galderma attributes that move with winning higher credit ratings from all three major rating agencies.

Big beauty leads Europe’s IPO bounceback
Galderma’s next move on SIX builds on deal activity led by other beauty powerhouses this month and fuels speculation that Europe’s IPO market is finally rebounding after two dull years.

This week, Personal Care Insights reported on German multinational perfumery and cosmetics chain Douglas’s push to go public with efforts to raise €1.1 billion (US$1.2 billion) on the Frankfurt Stock Exchange.

Last year, total IPO proceeds from the Europe, Middle East, India and Africa region dropped 39% from the previous year, according to EY’s Global IPO Trends 2023 report. The Americas region conversely enjoyed a 155% surge in total IPO proceeds in 2023, with about 132 deals closed on US exchanges.

By Benjamin Ferrer