By Andrea Figueras


Galderma plans to raise around $2.3 billion in an initial public offering on the stock exchange in Switzerland in the next three to four weeks.

The Swiss dermatology company, whose products include skincare brands Cetaphil and Alastin, said Wednesday that the offer on the SIX Swiss Exchange will have two tranches. The primary one will comprise newly issued shares, and a smaller tranche will consist of existing shares to be sold by current shareholders.

Private-equity group EQT is one of Galderma's shareholders and led the consortium that acquired the company in 2019.

The company, established in 1981 as a joint venture between L'Oreal and Nestle, aims to use proceeds from the IPO to strengthen its balance sheet by repaying and refinancing debt, it said. The listing is a strategic decision to broaden the company's shareholder base, it said.

It will also sell shares privately, including in the U.S.

The company booked net sales of $4.08 billion for 2023, achieving the higher end of its growth target of 6% to 9%. Core earnings before interest, taxes, depreciation and amortization jumped 21% on a constant-currency basis to $942 million, representing a 23.1% core Ebitda margin.

"Galderma aims to maintain consistent above-market growth and attractive margin expansion in the mid-term, as we continue to drive penetration and expansion of our portfolio for the patients, consumers, and healthcare professionals we serve," Chief Executive Flemming Ornskov.

For 2024, the company targets net sales on-year growth between 7% and 10% in constant currency. It also aims to achieve a core Ebitda margin in line with 2023.

According to its 2023 report, Galderma currently employs more than 6,500 people globally.


Write to Andrea Figueras at andrea.figueras@wsj.com


(END) Dow Jones Newswires

03-06-24 0541ET