BrokerDealer.com/blog update courtesy of extracts from today’s NYT DealBook

LONDON — The Italian drug maker Rottapharm said on Tuesday that it expected an initial public offering (IPO) of its shares later this month to value the company at up to 1.8 million euros, or about $2.46 billion.

Rottapharm, which operates under the name Rottapharm|Madaus, said that it expected to price its offering of 50 million shares at €7.25 to €9 a share. The bottom end of the price range would value the company at about €1.45 billion.

The offering represents about 25 percent of Rottapharm’s share capital, and it expects to list on the Mercato Telematico Azionario of the Borsa Italiana exchange in Milan. The company said on Tuesday that Italian securities regulators had signed off on its listing.

“Through the IPO, we will have the opportunity to present to the financial community the innovative and distinctive values of our business model,” Luca Rovati, Rottapharm’s chairman and chief executive, said in a statement. “Our entry into the capital markets is consistent with our growth strategy through new acquisitions, the launch of new products and expansion into new markets.”

About 5 percent of the offering, or about 2.5 million shares, will be sold to retail investors in Italy. The rest will be sold to institutional investors. The offer can be increased by up to another 10 million shares, depending on demand.

The shares are being sold by an investment vehicle controlled by the Rovati family, Rottapharm’s owners. The family will remain the drug maker’s largest shareholder after the offering.

The offer period is expected to end on July 10.

Founded in 1961, Rottapharm is the maker of Dona, which is used to manage pain associated with osteoarthritis; Legalon, a treatment for liver disorders; and Reparil, an anti-inflammatory and pain reducer. The company employs more than 2,000 employees in 85 countries worldwide.

The full article can be found at NYT DealBook.