PE shops Nordic Capital and Avista sold 375 million shares at £2.60 apiece in the over-subscribed offering, after raising the float from 300 million shares, according to bookrunner UBS.
Other investors sold another 389 million shares, or about 20% of ConvaTec, to Novo Nordisk (NYSE:NVO) for about $1.25 billion (£1.01 billion). Novo CEO Kasim Kutay is slated to join the Reading, U.K.-based company’s board, the Danish diabetes giant said.
“ConvaTec is a very attractive investment opportunity given the fundamentals of the medical products sector and the strength of the company’s product portfolio. I look forward to joining the board of directors of ConvaTec and working with Sir Christopher Gent and the other directors,” Kutay said in prepared remarks.
CTEC shares were up 1.6% to £2.73 apiece in London today. Nordic still owns a 16.1% stake (314 million shares), with Avista retaining a 7.0% stake (137 million shares). None of the proceeds will go to ConvaTec.
The wound care and colostomy supply maker last October grossed nearly $1.8 billion on the London Stock Exchange in an initial public offering. Earlier this month, ConvaTec reported an 8% increase in annual operating profit for 2016, as margin growth topped expectations.
($1 = £0.807)
Material from Reuters was used in this report.