Russia's Ozon Pharmaceuticals Prices Moscow Exchange IPO at 35 Roubles per Share

Summary: Russia's PJSC Ozon Pharmaceuticals priced its initial public offering on the Moscow Exchange at 35 roubles per share, the upper end of the previously announced 30-35 rouble range, valuing the Togliatti-based drugmaker at about 38.5 billion roubles including the funds raised. The placement of 3.45 billion roubles drew demand several times above the offer and more than 40,000 retail investors, Interfax reported on October 17, 2024.

The placement

The IPO totalled 3.45 billion roubles, comprising a base amount of 3 billion roubles and stabilization shares totalling 0.45 billion roubles. Demand from institutional and retail investors exceeded the amount of the offering at the upper end of the price range by multiple times, the company said, adding that the group attracted a broad range of institutional investors as well as more than 40,000 retail investors into its equity. Institutional investors bought 47% of the IPO and 53% went to retail investors, whose allocation was about 11%.

Mechanics and protections

The offering was structured with a stabilization mechanism amounting to 15% of the base offering, or 0.45 billion roubles; the mechanism involves only purchases of shares on the open market and will be in effect for 30 days after the start of trading. Existing company shareholders and affiliated persons committed to a standard 180-day lock-up period after the completion of the IPO under an agreement with professional securities market participants, with exceptions possible only on the condition that new shareholders assume the disposal restrictions and this does not increase the number of shares in free float.

Use of proceeds and strategy

The company plans to use the IPO proceeds to implement its growth strategy, which involves broadening its line of generic drugs and biosimilars as well as launching new production facilities. Ozon Pharmaceuticals had officially announced its intention to hold an IPO on the Moscow Exchange on October 8, 2024, nine days before pricing.

Listing details

Price: 35 roubles per share, the upper end of the 30-35 rouble range.
Valuation: about 38.5 billion roubles including the funds raised in the IPO.
Size: 3.45 billion roubles, of which 3 billion base and 0.45 billion stabilization.
Trading start: October 17, 2024, at 4:00 p.m. Moscow time on the Moscow Exchange.
Ticker and ISIN: OZPH, RU000A109B25.

Contact

PJSC Ozon Pharmaceuticals, Tolyatti, Samara region, Russia. Telephone +7 (84862) 2-90-00, e-mail ozon@ozon-pharm.ru; corporate website https://ozonpharm.ru.