EuroAPI, Sanofi’s pharmaceutical-ingredients spinoff, rose on its first trading day in Paris, in an early sign that appetite is recovering in Europe’s dormant listings market.
Shares trade at 12.63 euros as of 9:07 a.m. in France, above the reference price of 12 euros set by the Euronext exchange after markets closed on Thursday. The spinoff valued Euroapi at 1.1 billion euros ($1.2 billion).
Sanofi had previously planned to list the business via an initial public offering, but decided to pursue a spinoff instead due to market turmoil since the start of the year. Europe’s IPO market has been shuttered for the past two months as the war in Ukraine and soaring inflation weigh on investor sentiment.
“The most important element was that we get listed and that we become independent,” EuroAPI Chief Executive Officer Karl Rotthier said in an interview. “That was the reason why, when we saw the IPO window was closed, we straight away went for another instrument.”
EuroAPI, which had 892.8 million euros in sales last year, helps secure manufacturing and distribution capacities for Europe at a time of increasing supply-chain snags and shortages of essential medicines. China and India are among the countries that are big producers of drug ingredients.
Sanofi, which retains 30% of the unit’s share capital, declined as much as 3.8% on Friday. The French government took a 12% stake in EuroAPI via EPIC Bpifrance.
Active pharmaceutical ingredients are chemical molecules and biological substances essential to any drug. EuroAPI has more than 500 customers, 3,350 employees and six production sites in Europe, according to its website.
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