AFT Pharmaceuticals to raise $33.2 mln in IPO at $2.80 a share, list on NZX, ASX

Thursday 26th November 2015

AFT Pharmaceuticals, the Auckland based company whose products include Maxigesic pain medication and Maxiclear PE nasal decongestant, plans to list on the NZX and ASX next month after it has raised $33.2 million in an initial public offering.

The company set the price of 11.9 million shares to be offered at $2.80 apiece, following an institutional bookbuild, valuing AFT at $269 million, according to a draft company statement. The IPO includes $30.2 million of new capital to fund growth at AFT, while the trustees of the Atkinson Family Trust, associated with founder Hartley Atkinson and wife Marree, will raise $3 million selling their stake down to 76 percent.

The Atkinsons started AFT Pharmaceuticals in their garage in late 1997 and today the company sells more than 100 products in New Zealand, Australia, Asia, and in Europe, it said. The company's success "has been built on an intensive R&D programme". AFT then out-licenses the products to other companies to sell around world, while retaining patent protection.

Capital Royalty Group is currently the second-largest shareholder in the company, with almost 9 percent held in several allocations, according to the Companies Office. The specialist healthcare U.S. investment firm will lift its holding via a US private placement that will occur at the same time as the IPO, the statement said. Capital Royalty has about US$2 billion under management, it said.

"For them to further increase their stake in AFT speaks volumes about the future direction of our business,” the company said.

Hartley Atkinson said the IPO would allow the company to sell existing products such as Maxigesic in new markets and "advance our pipeline products like the SURF Nebuliser."

"This raise is about making sure we have additional capital available to make the most of the opportunities we’ve created for ourselves as a company,” he said.

The broker firm offer is scheduled to open on Dec, 4. First NZ Capital is the sole lead manager for the offer.

BusinessDesk.co.nz

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