By Dominic Chopping
Danish insulin maker Novo Nordisk A/S (NVO) has Monday set the
indicative price range of the initial pubic offering of its IT
services unit NNIT A/S at between DKK100 and DKK120 a share,
boosting 2015 operating profit by between DKK1.7 billion and DKK2.2
billion, depending on take-up of the overallotment option.
It said 10 million shares (40% of the share capital) are offered
for sale to the public, while 1.5 million additional shares are
granted by Novo Nordisk to the underwriters of the IPO as an
overallotment option (6%).
The company said 6,375,000 shares (25.5%) will be acquired by
Novo A/S at a price per share equal to the offer price and 750,000
shares (3%) will be acquired by NNIT as treasury shares.
Novo Nordisk will retain 6,375,000 shares (25.5%), assuming full
exercise of the overallotment option. If the overallotment option
is not exercised in full, Novo Nordisk will retain 7,875,000 shares
(31.5%).
Consequently, the free float is expected to be 46%, assuming
full exercise of the overallotment option.
The final offer price is expected to be announced no later than
6 March 2015.
Provided the IPO is completed in line with current plans, Novo
Nordisk expects to divest between 68.5% and 74.5% of NNIT.
The income will be exempt from tax charges under applicable
Danish tax laws, which is expected to have a positive non-recurring
impact on the effective tax rate for 2015 of 1 percentage point for
Novo Nordisk.
-Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@WSJNordics
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