TPG Capital-owned Par Pharmaceutical files for IPO-Reuters

(Reuters) – Generic drugmaker Par Pharmaceutical Holdings Inc, owned by private equity firm TPG Capital, filed with U.S. regulators for an initial public offering of common stock.

The major underwriters include J.P. Morgan, Goldman Sachs & Co, Citigroup and Morgan Stanley, Par Pharma said in a filing to the U.S Securities and Exchange Commission on Friday.

The filing included a nominal fundraising target of about $100 million, but did not reveal how many shares the company planned to sell or their expected price.

The Woodcliff Lake, New Jersey-based company could raise around $500 million in a public float and the IPO could value the drugmaker at $3 billion to $4 billion, Reuters had reported last month.

Par Pharma, which has a generic portfolio of about 95 products, said it would list its shares under the symbol “PRX”. It did not say which stock exchange it would list on.

The company, which operates through its generic division Par Pharmaceutical and its proprietary products division Par Specialty Pharmaceuticals, was acquired by TPG Capital for $1.9 billion in 2012 after activist firm Relational Investors LLC called on the company to sell itself.

Par Pharma has bulked up since then, acquiring injectable pharmaceutical maker JHP Group Holdings Inc for $490 million in January 2014, and a year later it picked up Ethics Bio Lab Pvt, an Indian-based contract research organization.

Net proceeds from the offering would be used to repay debt and for working capital purposes, Par Pharma said.

The company’s net loss narrowed slightly to $105.52 million in 2014 from $105.87 million a year earlier. Total revenues rose 19.2 percent to $1.31 billion.

The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.