EQT pushes back Galderma IPO plans amid market turmoil – sources

　　div classBodysc17zpet90 cdBBJodivpBy EmmaVictoria Farr and Oliver Hirtp

　　pLONDON Reuters – EQT is delaying listing plans for its 22 billion skincare firm Galderma as market volatility and recession fears in Europe cool investor appetite for what is set to be Switzerlands biggest flotation in almost two decades, two sources told Reuters.pdivdivdiv classBodysc17zpet90 cdBBJodiv

　　pThe listing, which was expected to take place in Zurich earlier this year, could happen in the autumn or early next year depending on market conditions, the sources said, speaking on condition of anonymity.p

　　pIf successful, Galderma‘s IPO would rank as Switzerland’s biggest initial public offering IPO since 2004 when online records of Zurich listings started. Novartis spinoff of Alcon in 2019 resulted in a bigger deal but it did not raise fresh cash from investors.p

　　pEQT declined to comment.p

　　pA spokesperson for Galderma said the company was continuing “to prepare the business for its next growth chapter”, but no decision had been made on timing of a possible listing. p

　　p“We have been closely monitoring market conditions and we intend to continue doing so,” he said.p

　　pEQT said in February it would continue preparations to list Galderma without giving a clear timeline, after an initial plan to float on the Swiss SIX exchange in April was delayed because of the Ukraine war.p

　　pThe blockbuster deal is seen as key to restarting IPOs in Europe after Russias invasion of Ukraine prompted companies to put their plans to go public on ice.p

　　pBut against the backdrop of a recession looming in the region, there is no certainty that equity capital markets will recover in the second half of the year.p

　　pInvestor morale in the euro zone fell in May to its lowest level since June 2020, dropping for the third month in a row, as signs of a downturn become more visible.p

　　pGalderma, previously part of Swiss giant Nestlé, was sold to an investment consortium led by EQT and including Singapores GIC and the Abu Dhabi Investment Authority for 10 billion in 2019.p

　　pThe company sells skincare brands and services in the dermatology market, including injectable aesthetics, dermocosmetics and therapeutic dermatology.p

　　pWhile investors remain interested in the deal, advisers have told EQT to hold off until the end of summer and revisit the plan in September at the earliest, the sources said.p

　　pGoldman Sachs, Morgan Stanley and Credit Suisse are coordinating the listing, alongside bookrunners Bank of America, BNP Paribas, Citigroup, Jefferies and UBS. p

　　p

　　pp Reporting by EmmaVictoria Farr and Oliver Hirt, additional reporting by Lucy Raitano and Alexander Huebner, editing by Pamela Barbaglia and Kirsten Donovanp

　　divdivdiv classBodysc17zpet90 cdBBJodivdivdiv