Novo Nordisk Sets IT Unit IPO Price at DKK100-DKK120

   By Dominic Chopping 
 

Danish insulin maker Novo Nordisk A/S (NVO) has Monday set the indicative price range of the initial pubic offering of its IT services unit NNIT A/S at between DKK100 and DKK120 a share, boosting 2015 operating profit by between DKK1.7 billion and DKK2.2 billion, depending on take-up of the overallotment option.

It said 10 million shares (40% of the share capital) are offered for sale to the public, while 1.5 million additional shares are granted by Novo Nordisk to the underwriters of the IPO as an overallotment option (6%).

The company said 6,375,000 shares (25.5%) will be acquired by Novo A/S at a price per share equal to the offer price and 750,000 shares (3%) will be acquired by NNIT as treasury shares.

Novo Nordisk will retain 6,375,000 shares (25.5%), assuming full exercise of the overallotment option. If the overallotment option is not exercised in full, Novo Nordisk will retain 7,875,000 shares (31.5%).

Consequently, the free float is expected to be 46%, assuming full exercise of the overallotment option.

The final offer price is expected to be announced no later than 6 March 2015.

Provided the IPO is completed in line with current plans, Novo Nordisk expects to divest between 68.5% and 74.5% of NNIT.

The income will be exempt from tax charges under applicable Danish tax laws, which is expected to have a positive non-recurring impact on the effective tax rate for 2015 of 1 percentage point for Novo Nordisk.

-Write to Dominic Chopping at [e-mail]; Twitter: @WSJNordics

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