Hikma plans to float on LSE next month
Jordanian pharmaceutical company Hikma became the second foreign drugs firm in a week to announce its intention to float on the London Stock Exchange.
The multinational group, which specialises in generic, branded and injectable products, is to list on the main market early November with a price range of 265p to 330p, valuing it at a mid-range of £500m.
Merrill Lynch is the bookrunner and adviser.
The move follows that of much smaller Bangladeshi drug company Beximco which said it would float on AIM this Friday as more companies try to expand by raising money in Britain.
Hikma chief executive Samih Darwazah said: “A listing in London will give us exposure to an international investor base and allow us to continue to execute our aggressive profitable growth strategy.”
It plans to raise £70m through new shares, and will also be issuing 27.2m existing shares.
The company also plans to apply for a secondary listing on the Dubai International Financial Exchange.
Hikma operates mainly in America, the Middle East and North Africa. Established in 1978 as a small family business, it has now gone global and plans to expand further with the listing.
Hikma said its net sales rose to $214.1m (£121.9m) in the year to end December 2004, from $137.6m (£78.4m) to end December in 2002. Net profit over the same period rose to $37.5m (£21.4m) from $16.9m (£9.6m).
A company spokesman said: “If Hikma reaches a £500m market capitalisation, the company will be the fourth largest pharmaceutical company in England, and will be part of the FTSE 250.”