Apotex shares jump 12% in TSX debut of billion-dollar IPO

Apotex Health Corp. made a strong debut on the Toronto Stock Exchange (TSX) on Wednesday, with its shares rising 12% to $26.85 by midday. The Toronto-based drug manufacturer initially aimed to raise $1 billion by pricing shares between $20 and $24, but high investor demand led it to increase the IPO size to $1.3 billion, pricing shares at $24. The surge in demand allowed private equity firm SK Capital Partners LP and other private shareholders to sell more stock than planned, expanding their offering from $150 million to $450 million. The remaining $850 million will go to Apotex, which will use the funds to reduce debt. Apotex’s successful IPO marks the largest in Canada since Definity Financial Corp.’s $1.4 billion offering in 2021. The company, founded in 1974 by the late Barry Sherman, specializes in generic drugs and operates globally, employing over 6,500 people across 70 countries. In its latest fiscal year, 45% of its sales came from Canada and 46% from the U.S., with the rest from international markets. The IPO follows a period of weak Canadian capital markets, where many tech IPOs from the COVID-19 pandemic saw sharp declines post-listing. Apotex’s strong performance reflects investor confidence in its growth potential, driven by rising demand for healthcare products due to chronic diseases and an aging global population. SK Capital Partners will retain a significant stake in Apotex after the IPO, continuing its role as a major shareholder. The company’s expansion aligns with its strategy of capitalizing on long-term healthcare trends while strengthening its financial position.