Omrix Biopharmaceuticals Ltd. plans to raise $55 million in an issue of 3.4 million shares on Nasdaq at a price range of $15-17 per share. Omrix’s company value for the issue will be $215-243 million, and $229 million at the midpoint. If the company reaches the finish line and gets what it wants, it will be traded under the symbol OMRI.
CIBC and UBS will be the lead underwriters and UBS will be the sole book runner. Oppenheimer & Co. Inc. and Leerink Swann will be the secondary underwriters. The underwriters will have an option to buy an additional 516,000 Omrix shares, increasing the IPO by $8.3 million, if exercised.
When Omrix filed its first draft prospectus, it said it planned to raise a maximum of $80 million, leading to assessments that the company value for the IPO would be $300-350 million. Omrix’s IPO does not include an offer for sale. The company will presumably hold a road show for investors in the coming days, and the results of the IPO will be known in two or three weeks.
In its updated prospectus, Omrix says it reached break-even point during the fourth quarter of 2005, posting a marginal profit of $93,000. The company posted an operating profit of $633,000 on $8.3 million revenue for the fourth quarter. The company posted an operating loss of $2.2 million on $27.5 million revenue in 2005 as a whole. It posted a net loss of $21.2 million in 2005, because of financing costs under a new financing agreement. Omrix has an accumulated loss of $92.1 million, and a shareholder’s equity deficit of $5.6 million.
Omrix’s largest shareholder is founder, president and CEO Robert Taub. The IPO will dilute his stake from 32.1% to 24.4%. Other major shareholders are MPM Capital, a venture capital fund that invests in biotechnology companies (29.4%, to be diluted to 24.4% after the IPO); AlpInvest Partners (8%, to be diluted to 6.1% after the IPO); and Capricorn Venture Partners (8.9%, according to Omrix’s prospectus).
Published by Globes [online], Israel business news - www.globes.co.il - on March 26, 2006
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