Zentiva has announced the successful pricing of its IPO securing a partial exit for investor Warburg Pincus. The offer price has been set at CZK485 per ordinary share. Based on this price the market capitalisation of the company is expected to be around CZK18.5bn. Gross proceeds to Zentiva are expected to be CZK2.7bn. Warburg Pincus has already made $125m in dividends on the investment and will make $85m from the offering. The value of its remaining 54% stake in Zentiva stands at around $380m.
Warburg Pincus has invested a total of $125m in Zentiva. In May 1998 the firm teamed up with management to fund a buyout of 67% of Leciva owned by the Czech government’s privatization authority and to fund subsequent tender offers for the remaining shares held by public shareholders. At the time of the acquisition, it represented the largest private equity investment made in Central and Eastern Europe.
In September 2003, Zentiva acquired Slovakofarma, a prominent pharmaceutical company in the Czech Republic and Slovakia, and integrated Slovakofarma’s operations with those of Leciva. Zentiva has around a 16% value share and 40% volume share of the Czech and Slovak markets.