Stevanato Group Announces Public Offering of Ordinary Shares

Rhea-AI Summary

Stevanato Group (STVN) announces a $300 million underwritten public offering of ordinary shares. The Company and a major shareholder are each offering $150 million. The underwriters have an option to purchase additional shares. The net proceeds will be used for general corporate purposes and investment activities. Morgan Stanley and William Blair are the joint book-running managers for the Offering.

Insights

Financial Analyst

The public offering by Stevanato Group, involving both a direct sale of shares and a secondary offering by a major shareholder, is a significant event for investors to consider. The dual nature of the offering, with half of the shares being sold by the company and half by an affiliate, suggests a liquidity event for the major shareholder while also providing the company with capital for investment and operational flexibility. The amount, $300 million, is substantial and indicates a strategic move to strengthen the company's balance sheet.

From a financial perspective, the use of proceeds for 'general corporate purposes' is a broad definition that investors typically scrutinize for more specific intentions. The company's mention of satisfying ongoing investment activities could hint at expansion or scaling operations, which might be a positive indicator of growth. However, the lack of specificity could also be seen as a potential red flag for investors who prefer transparent and targeted use of capital.

The underwriters' role, with Morgan Stanley and William Blair at the helm, implies confidence in the offering's success, given their reputation and expertise in the market. The 15% additional shares option for underwriters is a common practice that can stabilize the share price post-offering but also dilutes current shareholders' stakes.

Market Research Analyst

Stevanato Group's positioning in the drug containment and delivery market is critical to understanding the potential impact of this capital raise. Their role in the supply chain for pharmaceuticals and biotech products is increasingly important given the industry's growth and the rising demand for innovative drug delivery solutions. The offering may be a strategic move to capitalize on market trends, such as the push for more complex biologics that require specialized containment solutions.

Investors should also consider the market's reaction to similar offerings in the past and the current market conditions. If the sector is experiencing a bullish trend, this could be an opportune time for Stevanato Group to raise capital. Conversely, a bearish market might lead to a less favorable reception. Additionally, the sale by the major shareholder could be interpreted in multiple ways: as a routine portfolio adjustment, a lack of confidence in the company's future, or a simple cash-out strategy.

Legal Expert

The legal framework of this offering, particularly the use of an automatic shelf registration statement on Form F-3, is designed for non-U.S. companies allowing them to register securities with the SEC for offerings that can take place over a three-year period. This mechanism provides the company with the flexibility to go to the market quickly when conditions are favorable. It also implies that the company has met certain regulatory prerequisites, which can be reassuring for investors.

However, it's important to note the legal disclaimer that the offering is subject to state and jurisdictional securities laws. This means that the sale is not a blanket permission to sell shares anywhere and investors must be aware of potential legal restrictions or requirements. Furthermore, the 30-day option for underwriters to purchase additional shares is a legal provision that needs to be factored into the investment decision, as it could affect the share price and the overall dilution of equity.

PIOMBINO DESE, Italy--(BUSINESS WIRE)-- Stevanato Group S.p.A. (NYSE: STVN) (“Stevanato Group,” or the “Company”), a leading global provider of drug containment, drug delivery and diagnostic solutions to the pharmaceutical, biotechnology and life sciences industries, today announced the launch of an underwritten public offering of an aggregate of $300,000,000 of its ordinary shares.

Stevanato Group is offering $150,000,000 of its 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 78% of Stevanato Group’s outstanding ordinary shares, is offering $150,000,000 of its ordinary shares (the “Selling Shareholder Offering” and, together with the Company Offering, the “Offering”). Stevanato Group and the Selling Shareholder also intend to grant the underwriters an option, exercisable for 30 days after the date of the final prospectus supplement, to purchase additional ordinary shares up to an amount equal to 15% of the aggregate number of ordinary shares offered in the Offering on the same terms and conditions.

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.

Morgan Stanley and William Blair are serving as joint book-running managers and as representatives of the underwriters for the Offering. 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 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, New York, NY 10014, by telephone at (866) 718-1649 or by email at prospectus@morganstanley.com or by contacting William Blair & Company, L.L.C., Attention Prospectus Department, 150 North Riverside Plaza, Chicago, IL 60606, by telephone at (800) 621-0687, or by email at prospectus@williamblair.com.

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 anticipated terms of the Offering, the completion, timing and size 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, if the Offering is priced, 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 proposed Company Offering described in this press release and the Selling Shareholder may not consummate the proposed Selling Shareholder Offering described in this press release. If the Company Offering and the Selling Shareholder Offering are consummated, neither Stevanato Group nor the Selling Shareholder can provide any assurances regarding the final terms of the Offering or Stevanato Group’s 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240320397993/en/

Media

Stevanato Group

media@stevanatogroup.com

Investor Relations

Lisa Miles

lisa.miles@stevanatogroup.com

Source: Stevanato Group S.p.A.

FAQ

What is the purpose of Stevanato Group's (STVN) $300 million underwritten public offering?

The purpose is to raise funds for general corporate purposes, investment activities, and working capital needs.

Who is offering $150 million of ordinary shares in the underwritten public offering for Stevanato Group (STVN)?

Both the Company and a major shareholder, Stevanato Holding S.r.l., are each offering $150 million of ordinary shares.

Which companies are serving as joint book-running managers for the Offering by Stevanato Group (STVN)?

Morgan Stanley and William Blair are serving as joint book-running managers for the Offering.

What option do the underwriters have in the underwritten public offering by Stevanato Group (STVN)?

The underwriters have an option to purchase additional ordinary shares up to 15% of the aggregate number of shares offered in the Offering.

How can interested parties obtain the prospectus and prospectus supplement related to the underwritten public offering by Stevanato Group (STVN)?

Interested parties can obtain the documents by visiting the SEC's website at www.sec.gov or by contacting Morgan Stanley or William Blair.