Canadian generic drug manufacturer Apotex Health Corp. and its shareholders are poised to raise as much as $1.15 billion through an initial public offering on the Toronto Stock Exchange. This would mark Canada’s largest debut since 2021, when Definity Financial Corp. raised approximately $1.6 billion.
The initial offering is expected to comprise between 41.7 million and 50 million shares, priced in a range of $20 to $24 each, according to a company statement released Monday. Apotex plans to generate $850 million in gross proceeds from the sale of new shares, while a group of existing investors intends to sell an additional $150 million worth of equity. Underwriters led by RBC Capital Markets, TD Securities, and Bank of Nova Scotia may also purchase up to $150 million in additional stock through an over-allotment option.
Founded in 1974 by Barry Sherman, Apotex grew into one of the world’s largest manufacturers of generic drugs. Sherman and his wife, Honey Sherman, were found dead in their Toronto home in December 2017 in a double homicide that remains unsolved. In 2023, the company was acquired by New York-based SK Capital Partners, a life sciences-focused investment firm, in a deal that valued Apotex between $3 billion and $4 billion, according to sources familiar with the transaction.
As of March 31, Apotex carried $2.9 billion in debt under a series of credit facilities, including a fully drawn $800 million term loan. The company intends to use proceeds from the IPO to repay that loan.
With assistance from Derek Decloet and Melissa Shin.
