Initial public offerings will see two major deals from eye care company Bausch + Lomb Corp. and PepGen, a biotech, open for trading this week.
The two are the first significant conventional IPOs to hit the new issues market since Excelerate Energy (ticker: EE) went public in April. IPOs have slowed considerably in 2022 due to inflation, broad market volatility, and the Russia-Ukraine war.
Just 35 companies, raising about $3.2 billion, have gone public using a traditional IPO as of May 3, according to Dealogic. That represents a 74% drop from the 134 companies, valued at $55.7 billion, that opened for trading during the same period in 2021.
Both Bausch + Lomb, the eye-health unit of Bausch Health Companies Inc, and PepGen are scheduled to price their deals on Thursday, May 5, and trade the next day, two people familiar with the situations said.
Bausch + Lomb is the week’s most anticipated IPO. The Vaughan, Ontario, Canada, company plans to sell 35 million shares at $21 to $24 each. It could raise as much as $840 million if it prices at the top of its expected range, making Bausch the year’s second-biggest new issue. The biggest so far is TPG ( TPG ), the private-equity firm that collected $1 billion in January.
Bausch + Lomb is seeking a dual listing on the New York Stock Exchange and the Toronto Stock Exchange under the ticker BLCO, according to an April 28 prospectus,
Founded in 1853, Bausch + Lomb is known for its eye-health products, which include conventional and daily disposable contact lenses as well as contact-lens care products, over-the-counter eye drops, and eye vitamins.
Bausch Health, the parent company, is pursuing IPOs for two of its units—Bausch + Lomb and Solta Medical—in an attempt to reduce its leverage. Bausch Health had $22.9 billion in debt as of Dec. 31, Barron’s has reported.
Also on tap this week is PepGen, which is selling 7.2 million shares at $13 to $15 each. It plans to trade on the Nasdaq under the ticker PEPG. BofA Securities, SVB Securities, and Stifel are lead underwriters on the deal, according to a prospectus,
PepGen is a biotech that is seeking to treat severe neuromuscular and neurological diseases. Its lead product candidate, PGN-EDO51, focuses on Duchenne muscular dystrophy, or DMD. PepGen has initiated a Phase 1 clinical trial of PGN-EDO51 and expects to receive top-line data from the trial by the end of this year, the prospectus said.
Write to Luisa Beltran at [email protected]
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