Nordic private equity firm EQT, the Abu Dhabi Investment Authority (ADIA), and Auba Investment have collectively raised CHF 2.6 billion (USD 3.27 billion) from their latest sale of shares in Galderma, marking their largest divestment to date. Since the skincare specialist’s listing, the trio has generated CHF 12.54 billion in proceeds, while retaining shares worth an estimated CHF 7.6 billion.
This transaction marks their sixth accelerated bookbuild (ABB) and the largest so far, surpassing the CHF 2.3 billion raised during Galderma’s IPO in March 2024. The investors also sold a 10% stake to L’Oréal in August 2024 for an undisclosed amount.
On Monday, the wall-crossing process concluded, and the offering was multiple times oversubscribed, leading to the sale of 20 million shares, equivalent to 8.4% of Galderma’s equity. A formal covered message confirming strong demand followed within ten minutes.
By 6:30pm, messages to investors indicated that bids below CHF 130 per share risked being excluded, as orders were several times covered at or above that price point.
The final pricing was set at CHF 130 per share, representing a 6.9% discount to Monday’s closing price of CHF 139.70.
According to a banker involved, the transaction had been anticipated given it was the sixth sale within 13 months. The timing coincided with the expiry of a 90-day lock-up period following the previous sale in July and strong quarterly results published the week before. Galderma had raised its full-year guidance after reporting 21% constant-currency sales growth in the third quarter, which spurred investor interest.
New investment continues to flow into the company, with robust demand from the United States and strong support from long-term backers since the IPO. North American investors accounted for the largest share of demand, followed by investors from Switzerland and the United Kingdom.
Approximately 60% of the deal was allocated to the top 25 investors from a book comprising around 250 lines. The allocation between long-only investors and hedge funds was evenly split at 50/50, though bankers highlighted the notably strong participation of long-only funds. Priority allocations were made to existing shareholders and those engaged before the formal launch.
The trade represented roughly 18 days of composite trading volume and 55 days on the local line, according to another banker. One investor remarked that “if anyone could do this, it’s Galderma,” underscoring market confidence in the firm.
While the market had initially expected around 17 million shares to be sold, investors showed no resistance to the larger 20 million share offering. Order sizes increased significantly, including at least one worth USD 1 billion. Although there was sufficient demand to justify a higher price, the sellers opted for a disciplined approach to sustain post-sale performance.
The vendors had sold only a limited number of shares during the IPO’s base deal and exercised the entire secondary greenshoe option. The CHF 130 pricing marks the highest achieved in any ABB to date, though the discount was marginally wider than the 6.8% offered in May’s transaction.
