Japan’s Otsuka sets price for largest pharma IPO

TOKYO, Dec 6 (BestGrowthStock) – Japan’s Otsuka Holdings (4578.T: )
will sell shares at 2,100 yen in its upcoming initial public
offering, the lower end of its price range, in what will be the
largest ever IPO by a drugs company.

According to a company filing, Otsuka aims to sell a total of
198.5 billion yen ($2.4 billion) worth of shares, exceeding Merck
KGaA’s (MRCG.DE: ) $1.7 billion 1995 debut, previously the largest
pharmaceuticals IPO on record.

Otsuka, which developed schizophrenia drug Abilify and tied
up with Bristol-Myers Squibb (BMY.N: ) to sell it in the U.S. and
other markets, sounded out investors with a price range of
2,000-2,400 yen per share, compared with its indicative price of
2,400 yen.

The listing by Otsuka, which also sells sports drinks,
instant meals and skincare products, will be the second-biggest
in Japan this year after that of Dai-ichi Life Insurance
(8750.T: ).

Otsuka is Japan’s second-biggest pharmaceutical group in
terms of annual revenue after Takeda Pharmaceutical (4502.T: ).

The company said it would sell 80 million new shares and
shareholders will sell 10 million existing shares.

It has also earmarked 4.5 million shares for a green shoe
option.

Otsuka shares will start changing hands on the Tokyo bourse
on Dec. 15. It is expected to use the proceeds to speed the
globalisation of its operations and develop drugs.
[ID:nTOE6AB098]
(Reporting by Junko Fujita and James Topham; Editing by Michael
Watson)

Japan’s Otsuka sets price for largest pharma IPO