Montefarmaco Eyes Expansion In Italy And Overseas Through IPO
Executive Summary
Italian OTC and supplements player Montefarmaco is preparing to list on AIM Italia to raise funds for M&A and further international expansion.
Milan-based consumer healthcare Montefarmaco OTC SpA is looking to raise capital for further expansion by listing on the AIM Italia stock market.
The family-owned firm has submitted a pre-admission notice to Borsa Italiana – which operates AIM Italia – in preparation for listing, with the price range set between €6.6 ($7.5) and €7.3 per share. AIM Italia is positioned as the market dedicated to dynamic and competitive SMEs, which are looking for capital in order to finance their growth.
Commenting on the rationale for the move, Montefarmaco said it was seeking to raise capital from investors in Italy and overseas to accelerate the company’s growth. In 2019 the company generated sales of €53m and is looking to break the €60m barrier this year.
International Ambitions
Seeking to consolidate its position on the Italian consumer healthcare market, Montefarmaco is also hoping to expand its presence internationally. Outside its home market the company currently operates in Bucharest, Romania and Shanghai, China.
Montefarmaco is targeting acquisitions of consumer healthcare companies and brands and looking to invest in new product development to expand its portfolio, which comprises OTC drugs, dietary supplements, medical devices and cosmetics.
Known for the development of brands such as Lactoflorene and Iridina, the company recently expanded its offering by securing the exclusive rights to distribute in Italian pharmacies Menarini Group’s Fastum range of non-prescription analgesics and cosmetics. (Also see "Italy Round-Up: Mylan And Polifarma Strike Deal, OTC Market Stable, Cholesterol-Lowering Probiotic Launch" - HBW Insight, 27 Feb, 2020.)
Now was the perfect time to further expand, Montefarmaco suggested, noting that the Italian consumer healthcare market had experienced solid growth in recent years. This had been driven by a growing culture of self-care and long-term preventative healthcare, the firm pointed out, which had particularly benefited the vitamins and minerals and dietary supplement segments.
Italian Market On The Up
The Italian nutraceutical market was the largest in Europe, the firm claimed, citing Euromonitor data.
According to the latest figures from the Italian Association of Health Products Manufacturers and Distributors, FederSalus, Italy’s dietary supplements market posted value sales up 3.6% to €3.57bn in 2019. And this year COVID-19 has spurred significant growth for some of Italy's most popular dietary supplement categories in the first quarter, as consumers flooded pharmacies in search of products to boost their immune systems. (Also see "Italy's Supplements Market Gets Big Boost From COVID After Solid 2019" - HBW Insight, 1 Jul, 2020.)
In the admission process to AIM Italia, Montefarmaco is supported by Alantra as nominated advisor and global coordinator, by UBS as financial advisor, by Nctm as deal counsel and by EY S.p.A. as auditor.