Apotex Health Corp., a prominent Canadian generic drug manufacturer, along with some of its backers, successfully raised C$1.3 billion ($932 million) in an initial public offering (IPO) on the Toronto Stock Exchange. This significant transaction marks the country’s largest listing since 2021, signaling a notable event in an otherwise subdued Canadian IPO market.
The offering priced its shares at C$24 each, reaching the high end of the previously announced C$20 to C$24 range. This pricing indicates robust investor demand for the company’s stock. According to a statement released Tuesday, Apotex sold 35.4 million shares, while selling holders divested approximately 18.8 million shares. The total number of shares in the offering had been increased on Monday, as reported by Bloomberg News.
The C$1.3 billion raise stands out in a Canadian market that has seen a significant slowdown in new listings. Data compiled by Bloomberg reveals that listings in the country have declined substantially since peaking at 77 in 2021. Furthermore, delistings and take-privates have consistently outpaced new offerings, contributing to a shrinking number of public companies for the fourth consecutive year, a trend projected to continue into 2025.
Apotex was founded in 1974 by Barry Sherman, who built the enterprise into one of the world’s largest manufacturers of generic drugs. The company’s history includes a tragic chapter: Sherman and his wife, Honey Sherman, were found dead in their Toronto home in December 2017, in what police described as a double homicide, a case that remains unsolved. In 2023, the company was acquired by New York-based SK Capital Partners, a life-sciences focused investment firm, in a deal that valued Apotex at an estimated C$3 billion to C$4 billion, according to individuals familiar with the transaction who spoke to Bloomberg Businessweek.
A consortium of leading financial institutions worked on the offering, including Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, and Jefferies Financial Group Inc. The shares are anticipated to commence trading on the Toronto Stock Exchange under the symbol APTX.
The successful pricing at the top of its range and the substantial capital raised underscore Apotex’s market appeal and represent a significant achievement for the company and its backers amidst a challenging environment for new public offerings in Canada.
