After initial intentions for a stock market listing were postponed earlier in the year, Swiss skincare company Galderma raised nearly $1 billion through a private placement of shares.

The freshly issued shares have been partially absorbed by management and shareholders, with the remaining shares going to unidentified external investors, according to a statement from the firm.

The deal’s proceeds, according to Galderma, would be utilised to strengthen its balance sheet and hasten the company’s expansion.

“This demonstrates the conviction that we all have in Galderma’s track record and bold ambition,” Michael Bauer, a partner at the company’s main shareholder EQT (EQTAB.ST), said.

Galderma stated that company still intends to seek an initial public offering (IPO), but made no timeframe mention.

For well over a year, EQT has been preparing to IPO Galderma in a deal that might be worth more than $20 billion.

However, the plans had to be postponed due to challenging market conditions, most recently in the spring.

According to sources who spoke to Reuters in the past, Galderma planned to raise a sizeable sum of new money through its IPO to pay off debt, leaving it vulnerable to market volatility.

As a member of an investor group that also includes the Abu Dhabi Investment Authority (ADIA) and the Canadian pension fund PSP Investments, EQT acquired Galderma, formerly Nestle’s Skin Health division, in 2019.

With $3.8 billion in net sales and $791 million in earnings before interest, taxes, depreciation, and amortisation (EBITDA), the dermatology group reported 2022.

According to Fitch Ratings, the corporation has debt of more than $3.5 billion that will mature in 2026.

(Adapted from MarketScreener.com)