Abu Dhabi-backed Swiss skincare group raises $1bn

Unsplash/Sam Moghadam Khamseh

• Galderma plans to use funds to boost balance sheet ahead of IPO
• Group bought in 2019 by Abu Dhabi Investment Authority and EQT

A Swiss skincare group backed by the Abu Dhabi Investment Authority has raised $1 billion from newly issued shares.

Galderma aims to use the funds to boost its balance sheet ahead of a planned stock market listing.

The company, founded in 1981, was bought in 2019 by a consortium led by the Abu Dhabi sovereign wealth fund and Swedish investment firm EQT Partners.

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It was reported at the time that the consortium wanted to pursue an initial public offering for Galderma, but this has yet to take place.

The company said in a statement on Monday that an IPO “remains the likely next step”, but did not mention a timeline.

The investors in the $1 billion share issuance have not been named.

“We are delighted to see current and new investors sharing our strong confidence and trust in Galderma’s growth trajectory,” said Michael Bauer, co-head of global healthcare sector team at EQT Partners.

Galderma generated $3.8 billion in net sales last year, a year-on-year increase of 13.9 percent. Its products include Restylane dermal fillers and treatments for acne and rosacea.

Net profit rose 14.5 percent to $791 million last year. In March the company predicted that its net sales would grow by 6 to 9 percent in 2023.

The company has around $3.5 billion debt maturing in 2026, according to Fitch Ratings. Reuters reported on Monday that sources previously said Galderma intends to use the IPO to pay down its debts.