Japan's Otsuka has an IPO in the works. Bloomberg reports that Otsuka is prepping for a public offering that could take place by year's end--and could raise beaucoup capital for the drugmaker. As Japan's largest privately held pharma company, Otsuka could enter the public fray with a market value of more than $12 billion, analysts tell Bloomberg, outranking its fellow drugmaker Eisai.
Sources close to the process tell Bloomberg that Otsuka hasn't decided on the IPO's size. But analysts tell the news service that the share price could be about 2,100 yen ($24.91), based on recent calculations of an option-exercise price for a planned issue to Otsuka officials. The company has hired investment bankers Morgan Stanley, Nomura Holdings and UBS to manage the offering.
But what will Otsuka do with the proceeds? "We are interested to know how Otsuka will use the money raised," Yoshihisa Okamoto of Mizuho Asset Management tells Bloomberg. "The stock may be popular with investors anticipating future growth if the company focuses on globalizing its business such as through M&As."
- read the Bloomberg piece