Apotex Eyes Major Public Offering in Toronto
Canadian generic drug manufacturer Apotex Inc. is gearing up for an initial public offering (IPO) in Toronto during the first half of the year, with plans to raise as much as $1 billion, according to sources familiar with the matter. This potential offering comes at a time when other Canadian companies are also testing the market, signaling a renewed interest in public listings.
Details of the Proposed IPO
An IPO of this magnitude would represent Canada's largest debut since 2021, when Definity Financial Corp. raised approximately $1.6 billion. Financial institutions RBC Capital Markets, Jefferies Financial Group, and TD Securities are advising on the transaction, though no final decisions have been made regarding the exact timing or size. The offering could range from $750 million to $1 billion, with plans still subject to change.
Spokespeople for Jefferies, RBC, and TD have declined to comment, while a representative for Apotex did not respond to requests for comment. The sources, who asked not to be identified due to the private nature of the information, emphasized that details remain fluid.
Background and Ownership
Apotex was founded in 1974 by Barry Sherman, who transformed the company into one of the world's leading manufacturers of generic drugs. In a tragic turn, Sherman and his wife, Honey Sherman, were found dead in their Toronto home in December 2017 in what police described as a double homicide; the case remains unsolved.
In 2023, the company was sold to New York-based SK Capital Partners, a life-sciences focused investment firm, in a deal that valued Apotex between $3 billion and $4 billion. This acquisition has positioned the firm for its current public offering ambitions.
Market Context and Other Listings
The potential Apotex IPO coincides with a broader trend of Canadian companies exploring public markets. For instance, Saskatchewan's AGT Food and Ingredients Inc. is expected to be among the first sizable listings this year, with plans to raise up to $460 million. This activity suggests a growing confidence in the market environment for new offerings.
As the market heats up, investors are closely watching these developments, which could pave the way for more IPOs in the coming months. The success of such listings will likely influence future corporate strategies in Canada's pharmaceutical and agribusiness sectors.
