Leading the Way in IPOs
The successful listing of Galenica Santé in 2017 not only showcased Credit Suisse's expertise in investment banking but also demonstrated how different areas of the bank are working together effectively to deliver the best possible outcome for clients.
In July 2016, Galenica announced the acquisition of US-listed Relypsa, a transaction that gave its division Vifor Pharma a dedicated US commercial organization as well as global rights to the drug Veltassa®, a potassium binder used for the treatment of hyperkalaemia. Credit Suisse advised Galenica on the acquisition and provided the necessary acquisition financing.
Prior to this acquisition, Galenica's Board of Directors had announced its intention to separate the Galenica group into two independent listed companies. When it came to executing this decision and to take Galenica Santé public, Credit Suisse was once again a key partner for the transaction: It not only consistently ranks as no. 1 in investment banking in Switzerland but has also managed 16 of the 19 largest IPOs – those exceeding CHF 200 million – in the Swiss market since 2004.1
Credit Suisse maintained its impressive track record in 2017, when it was appointed Joint Global Coordinator and Joint Bookrunner for the CHF 1.9 billion IPO of Galenica Santé, the leading fully-integrated healthcare provider in Switzerland. The transaction, which was executed in April 2017, ranked at the time as the second-largest IPO in Switzerland in a decade and was the largest IPO in Europe in 2017 at the time of listing.
Effective collaboration across the Group
For Credit Suisse, the Relypsa transaction and its financing, as well as the offering and listing of Galenica Santé on SIX Swiss Exchange, were not only an opportunity to demonstrate its deep expertise in investment banking and equity capital markets but to also show how its teams in different divisions can collaborate effectively to service client needs. In this particular case, experts in the Investment Banking and Large Swiss Corporates businesses within the Swiss Universal Bank worked side by side with their colleagues in Investment Banking & Capital Markets, leveraging relationships and delivering their expertise and resources for the benefit of the client.
In March 2017, Galenica announced that the IPO would consist of 43.1 million registered shares with an offer price range of CHF 31.00 to CHF 39.00 per share. The investor response was extremely positive and the strong demand led to the deal being upsized by 5.6 million shares in April 2017. The offering was several times oversubscribed, with the price being set at the top end of the range. The seller, Galenica (now Vifor Pharma), retained only a 2.5 percent stake in Galenica Santé, making it effectively a 100 percent offering as investors were attracted, among other things, by a high dividend yield and stable earnings growth.
For financial institutions such as Credit Suisse, such transformative transactions offer a special opportunity to deliver their full suite of capabilities thanks to cross-divisional collaboration. The Relypsa M&A transaction, followed by the IPO of Galenica Santé, are prime examples of this. The client in turn benefited from Credit Suisse's ability to act as a "one-stop shop", providing consistent support and advice throughout the transactions.