Lonza Group IPO

See the parts I highlighted in red below. I'm for sure not going to try to subscribe to this IPO for Lonza Group.

Switzerland's Lonza Group, which has a market capitalisation of approximately S$4 billion, is seeking a secondary listing on the Singapore Exchange (SGX).

In a statement released on Friday, Lonza, a supplier to the pharmaceutical, healthcare and life science industries, announced that it submitted an application for a secondary listing by way of an introduction on the main board of the SGX. The first day of trading is expected in the fourth quarter of 2011.

It is understood that this secondary listing by way of introduction entails the transfer of shares from the Swiss stock exchange to the SGX, and that Lonza will not be issuing new shares. Lonza did not reveal how many shares would be transferred.

Lonza shares are currently trading at between 55-56 Swiss Francs per share on the Swiss stock exchange.

On the rationale for its secondary listing, Lonza's chief executive officer, Stefan Borgas, said: "This strategic move to list in Singapore enables us to have a more visible presence in Asia, in addition to allowing us to tap the strong capital flows in Asia, while enlarging and broadening our current investor base in the region."

For the first half of 2011, Lonza reported revenues of 1.193 billion Swiss Francs, a decrease of 8.3 per cent year-on-year. In light of the volatile Swiss Franc, Lonza said revenue would have increased 4.8 per cent at constant exchange rates.

It reported a loss for the period of 97 million Swiss Francs, a fall of 21.4 per cent year-on-year, but an increase of 4.6 per cent at constant exchange rates.

Lonza said that the currency impact on EBIT for the period amounted to -44 million Swiss Francs. In its stock exchange filing, Lonza also said increases in raw material prices persisted and the unpredictability of regulatory authority approvals remained a challenge.

In Singapore, Lonza opened its new mammalian cell culture plant this year. It also recently announced an additional 10 million Swiss Franc investment in Singapore for the further expansion of its biopharmaceutical development services platform.

From Channel NewsAsia, "Lonza Group seeks secondary listing on SGX".


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