FRANKFURT: German drugmaker Dermapharm is preparing for an initial public offering (IPO), probably stealing a march on much larger Siemens' healthcare unit Healthineers as the first stock market flotation in Germany this year.
Dermapharm, which makes generic drugs, cosmetics, dietary products and medical devices, said on Monday it aimed to raise about 100 million euros ($122 million) in fresh capital to fund growth during an IPO in the first half of 2018.
The family owners will also sell shares, and after the IPO 25 percent of the company will be in the hands of public investors, Dermapharm said.
According to estimates from analysts of the banks organising the IPO - Berenberg and Oddo - the company could be valued at 1.5 billion to 1.75 billion euros after the deal has been completed.
Privately held Dermapharm is targeting earnings before interest, tax, depreciation and amortization of 139 million euros sales on sales of 562 million euros this year.
Generic drugmakers such as Stada, Hikma, Richter Gedeon and Almirall trade at 8 to 14 times their expected core earnings.
People familiar with the matter told Reuters last week that Dermapharm was planning to list before the Easter holidays.
That will likely make it Germany's first stock market listing of the year, ahead of the much larger flotation of Healthineers, expected in March, the people added.
Dermapharm founder Wilhelm Beier cancelled a sale of the company to a private equity group in 2016. At the time, BC Partners and Nordic Capital had vied to take control of the group.
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