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Catalent?s $870 million IPO will help company reduce debt, enable future growth.
Catalent Inc. has completed an initial public offering, garnering more than $870 million, and is now a publicly traded company on the New York Stock Exchange (NYSE).
On July 31, the company announced the pricing of its initial public offering of 42,500,000 shares of its common stock at $20.50 per share. The shares began trading on the NYSE on July 31, 2014 under the ticker symbol CTLT, and the offering is expected to close on August 5, 2014, subject to customary closing conditions, according to company reports. Catalent has granted the underwriters a 30-day option to purchase up to an additional 6,375,000 at the initial public offering price.
The proceeds of the offering will be used to redeem more than $800 million (estimated) of Catalent’s currently outstanding debt, the company reports. “This will allow the company to significantly reduce its interest expense, enable future potential internal and external growth strategies, and to continue our growth-biased investments into new technologies, capabilities, global development and manufacturing facilities and capacity,” a company statement reports.
Recent investments include new facilities for its softgel and clinical supply businesses in China and Brazil; a $20 million Biologics Center of Excellence for cell line development and biomanufacturing in Madison, WI; and a $35 million ongoing expansion or the company’s Oral Advanced Technologies manufacturing site in Winchester, KY.
Source: Catalent Inc.