Stevanato Group Announces Pricing of Upsized Public Offering of Ordinary Shares
- Stevanato Group priced an upsized underwritten public offering of 12,700,000 ordinary shares at $26.00 per share.
- Expected gross proceeds from the offering are approximately $330 million.
- The Company intends to use the net proceeds for general corporate purposes and working capital needs.
- Morgan Stanley and William Blair are serving as lead book-running managers for the offering.
- None.
Insights
The announcement by Stevanato Group S.p.A. regarding their upsized underwritten public offering represents a significant capital market transaction. The offering of 12,700,000 ordinary shares at $26.00 per share is set to generate gross proceeds of approximately $330 million, before fees and expenses. This capital infusion is noteworthy, as it indicates the company's strategic intent to bolster its balance sheet for general corporate purposes, which may include expansion, R&D and operational enhancements.
It is important to analyze the potential dilution effect on existing shareholders due to the increase in the number of outstanding shares. The decision by Stevanato Holding S.r.l. to sell a portion of its holdings could suggest a rebalancing of its investment portfolio or a partial exit strategy. The market's reception of this offering will be a key indicator of investor confidence in Stevanato Group's growth prospects and current valuation.
Investors should monitor the utilization of the net proceeds, as effective deployment could drive future growth and profitability, while inefficient use may not yield the expected return on investment. The 30-day option granted to underwriters to purchase additional shares could further affect the market's supply-demand dynamics shortly after the offering.
Stevanato Group operates in the pharmaceutical and biotechnology sectors, which are known for their high capital expenditure requirements, particularly in drug containment and delivery systems. The company's decision to raise additional capital can be interpreted as a proactive move to strengthen its competitive position within the industry. The use of proceeds for investment activities and working capital needs suggests a focus on long-term operational readiness and the ability to respond to market demands.
However, the timing and pricing of the offering are pivotal. A $26.00 price point needs to be assessed against the company's historical stock performance and industry multiples to determine its attractiveness to potential investors. Moreover, the involvement of prominent financial institutions as underwriters and book-runners adds a layer of credibility to the transaction, potentially increasing investor interest.
Analyzing peer companies and sector-specific trends will be important in understanding the impact of this offering on Stevanato Group's market positioning. The health of the life sciences sector, regulatory environments and technological advancements are external factors that could influence the success of the company's strategic initiatives funded through this capital raise.
The offering is being conducted under an automatic shelf registration statement on Form F-3, which has been declared effective by the SEC. This legal framework allows for a more streamlined and flexible process for companies to access public markets. The legal stipulations that the offering is subject to customary closing conditions and that no proceeds from the Selling Shareholder Offering will go to the company are standard practices in such transactions.
It is also essential to consider the regulatory landscape that the company operates in. As a provider of solutions to the pharmaceutical, biotechnology and life sciences industries, Stevanato Group must navigate a complex web of regulations. Compliance with these regulations, as well as the potential impact of changes in policy, can have significant implications for the company's operations and the success of its investments.
Investors should be aware of the legal disclaimers indicating that the press release does not constitute an offer to sell or a solicitation of an offer to buy the securities, highlighting the importance of consulting the prospectus and final prospectus supplement for detailed information on the offering. This is a standard precaution to ensure compliance with securities law and to inform investors of the official channels for obtaining offering documents.
PIOMBINO DESE,
Stevanato Group is offering 6,350,000 ordinary shares (the “Company Offering”), and Stevanato Holding S.r.l., an affiliate and major shareholder of the Company (the “Selling Shareholder”), which currently holds approximately
The total gross proceeds from the Offering, before deducting underwriting discounts and commissions and offering expenses, are expected to be approximately
Stevanato Group intends to use the net proceeds from the Company Offering for general corporate purposes, including to enable Stevanato Group to satisfy the requirements of its ongoing investment activities and working capital needs, and to ensure an appropriate level of operating and strategic flexibility. Stevanato Group will not receive any proceeds from the Selling Shareholder Offering. The Offering is expected to close on March 26, 2024, subject to the satisfaction of customary closing conditions.
Morgan Stanley and William Blair are serving as lead book-running managers and as representatives of the underwriters for the Offering. BofA Securities, Citigroup and KeyBanc Capital Markets are also serving as joint book-running managers. The Offering is being made pursuant to an automatic shelf registration statement on Form F-3 that was filed and automatically declared effective with the Securities and Exchange Commission (the “SEC”) on March 20, 2024. The Offering is being made only by means of a prospectus supplement to the accompanying prospectus that forms part of the registration statement. Copies of the prospectus and final prospectus supplement related to the Offering may be obtained, when available, by visiting the SEC’s website at www.sec.gov or by contacting: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor,
This press release does not constitute an offer to sell or the solicitation of an offer to buy Stevanato Group’s ordinary shares, nor shall there be any sale of such shares in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Stevanato Group
Founded in 1949, Stevanato Group is a leading global provider of drug containment, drug delivery and diagnostic solutions as well as engineering solutions to the pharmaceutical, biotechnology and life sciences industries. Stevanato Group delivers an integrated, end-to-end portfolio of products, processes and services that address customer needs across the entire drug life cycle from development to clinical and commercial stages. Stevanato Group’s core capabilities in scientific research and development, its commitment to technical innovation and its engineering excellence are central to its ability to offer value added solutions to clients.
For more information, please visit www.stevanatogroup.com
Forward Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Certain statements contained in this press release, including statements regarding the completion and timing of the Offering and the intended use and allocation of proceeds from the Offering, are forward-looking statements based on Stevanato Group’s current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievement to materially differ from those expressed or implied by these forward-looking statements. These statements are not guarantees of future performance and are subject to a number of risks and uncertainties, including market conditions, the ability to complete the Offering, the trading price and volatility of Stevanato Group’s ordinary shares and risks related to the satisfaction of closing conditions in the underwriting agreement related to the Offering. As such, the reader should not place undue reliance on these forward-looking statements, as there can be no assurances that the plans, initiatives or expectations upon which they are based will occur. For a description of additional factors that could cause the Company’s future results to differ from those expressed in any such forward-looking statements, refer to the risk factors discussed under “Risk Factors” in the Company’s Annual Report on Form 20-F for the year ended December 31, 2023 filed with the SEC on March 7, 2024 and in the prospectus supplement and the accompanying prospectus related to the Offering filed with the SEC. Stevanato Group may not consummate the Company Offering described in this press release and the Selling Shareholder may not consummate the Selling Shareholder Offering described in this press release. If the Company Offering is consummated, Stevanato Group cannot provide any assurances regarding its ability to effectively apply the net proceeds it will receive as described above. All forward-looking statements in this press release are based on information currently available to Stevanato Group and speak only as of the date of this press release, and Stevanato Group assumes no obligation to update these forward-looking statements in light of new information or future events, except as may be required by law.
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Media
Stevanato Group
media@stevanatogroup.com
Investor Relations
Lisa Miles
lisa.miles@stevanatogroup.com
Source: Stevanato Group S.p.A.
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