Galderma Stock Falls After Report That Backers Plan to Sell Shares
By Andrea Figueras
Galderma's shares dropped after a report said that some shareholders would sell shares in the skincare company, months after its debut on the Swiss stock exchange.
The stock traded 3.6% lower at 77.83 Swiss francs ($91.52) in midday European trading, having fallen as much as 5.1% earlier in the session.
"The transaction is expected to increase the free float of Galderma and improve the liquidity of the stock," a spokesperson of the company said. "No changes to Galderma's governance and board will follow as a result of the transaction."
On Tuesday, Bloomberg reported that the private equity backers of Galderma were looking to sell $1.2 billion worth of shares. The report said that EQT, the Abu Dhabi Investment Authority and Auba Investment intended to place some 13 million shares with investors, representing a 5.5% stake.
These shareholders didn't immediately respond to a request for comment.
The news comes just months after Galderma--which houses brands such as Cetaphil and Restylane--went public in Switzerland. At that time, the listing of its shares became the largest initial public offering of the year, according to Dealogic data.
In August, L'Oreal agreed to buy a minority stake in Galderma valued at $1.85 billion. The French beauty giant said it was acquiring a 10% stake in the company from EQT-led Sunshine SwissCo, Abu Dhabi Investment Authority and Auba Investment.
L'Oreal's move was aimed at bolstering its exposure to the fast-growing market for aesthetic injections such as fillers, which Galderma sells.
Write to Andrea Figueras at andrea.figueras@wsj.com
(END) Dow Jones Newswires
September 04, 2024 07:39 ET (11:39 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
What’s Happening in the Markets This Week
-
Worst-Performing Stock ETFs of the Quarter
-
Q3 in Review and Q4 2024 Market Outlook
-
Top-Performing Stock ETFs of the Quarter
-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue
-
Industrials: Many Stocks Overvalued After Q3 Outperformance
-
Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities
-
What the Election Could Mean for Big Tech Stocks
-
3 Lessons From Recent Stock Market Drama
-
Consumer Cyclicals: Even Amid Moderating Consumer Spending, We See Discounts
-
Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued
-
Utilities: Falling Interest Rates, Growth Outlook Boosting Stocks