Ebb & Flow
With some SEK1.2 billion ($165.5 million) in cash in its coffers at June 30, Biovitrum is in no rush to raise additional capital as it seeks to list its shares on the Stockholm Stock Exchange. Thus, while its shares are due to be priced this week, the company’s listing plans do not include selling new shares or raising any money.
"Our revenue streams have given us a strong balance sheet and we are able to fund all our R&D from this cash flow. However, when we need to issue new shares to finance future business objectives, this listing will give us ready access to the capital market," CFO Goran Arvidsen told Ebb & Flow.
Last week, the company announced some of its investors, including Nordic Capital and MPM Capital, would be selling up to 6.7 million shares, representing 15% of the shares outstanding, although the proportion of shares available could rise to 20%. This allows the selling VCs an instant exit for those shares with no lockup, while also putting some shares onto the public market.
The institutional bookbuilding period is due to close this Thursday, with the offering price to be announced on Friday. "We are looking at a range of SEK93-SEK105 ($12.80-$14.48) a share," Arvidsen said. That would value the company at SEK4.2-SEK4.7 billion ($572-$647 million).
Biovitrum spun out of Pharmaciain 2001. The company hit some stumbling blocks in 2003 and 2004, when its two lead products failed. The once Phase II play found itself a preclinical company.