Closely Watched Bausch + Lomb IPO Priced Below Expectations

  • Bausch + Lomb Corp BLCO has priced its initial public offering at $18/share, falling short of expectations as it became the first big company in months to try going public in a turbulent stock market, writes Wall Street Journal.
  • Bausch Health Companies Inc BHC, the parent company, raised $630 million in the offering. 
  • According to a regulatory filing, BHC aimed to raise as much as $840 million and sell the stock at $21 - $24 a share. 
  • The Wall Street Journal had previously reported that the deal was likely to price at the low end or below the range.
  • The debut of the eye-care spinoff is being watched closely as a bellwether for the IPO market. 
  • “It’s a real critical week for the IPO market,” said Jeff Zell, senior research analyst at IPO Boutique. With so few IPOs so far this year, “It’s extremely important that this one not only gets out on the right foot but trades steady in the aftermarket,” he said.
  • Traditionally, volatility has been considered the most crucial indicator for the IPO market. With little visibility into the next day, let alone week, a volatile market makes that tricky.
  • Some analysts say that makes it harder for stock pickers and makes IPOs less attractive. Fund managers expect outperformance from IPOs, and if stocks are nearly all moving in unison, the odds of achieving that become longer.
  • Price Action: BHC shares closed 1.43% higher at $17.00 during after-hours trading on Thursday.
  • Photo by Gedesby1989 via Pixabay
Posted In: BriefsNewsHealth CareFinancingOfferingsIPOsGeneral