By Dave Graham and John Revill
ZURICH (Reuters) – Skin care company Galderma’s shares soared on Friday after the maker of cosmetic fillers and medical creams made its stock market debut in Switzerland.
The company’s shares started trading at 61 Swiss francs on the SIX Swiss Exchange, up 15% from the final price for its initial public offering (IPO) of 53 francs per share.
The opening price gave Galderma a market capitalisation of 14.5 billion francs ($16.1 billion).
Galderma’s IPO, which was announced earlier this month, is likely to be one of the biggest in Europe this year. A successful debut could trigger other big flotations.
Chief Executive Flemming Ornskov rang a giant cow bell as the opening price was announced at an event organised by the company at a business centre by Zurich airport.
“Wow, what an event!” Ornskov said, as cheers broke out when the opening price was read out.
“The good news is our future is even more exciting,” the Danish executive said. “But only if we continue to innovate, inspire and lead …as we now embark on a really exciting chapter of growth and success.”
With a placement volume of around 2 billion francs, excluding an over-allotment option, the IPO is also the biggest in Switzerland since smart meter maker Landis + Gyr raised a similar amount in 2017.
Rising equity markets and the prospect of lower interest rates are helping to stoke investor interest in IPOs, although some companies have seen their shares drop after their debut.
Galderma, originally set up as a joint venture between Nestle and L’Oreal, sells Cetaphil, a product for damaged and sensitive skin, as well as muscle relaxants, fillers and creams to treat medical problems for conditions like rosacea.
Proceeds from the IPO, which consisted mainly of new shares, will be used to pay down debt.
($1 = 0.8991 Swiss francs)
(Reporting by John Revill and Dave Graham, editing by MIranda Murray and Mark Potter)
