AFT Pharmaceuticals considers IPO and NZX, ASX listings

AFT Pharmaceuticals, the Auckland-based pharmaceutical company, is considering a $49 million initial public offering along with listing on the NZX and ASX.

The proposed offer involves a primary raise of $45 million, and a $4 million selldown by the Atkinson Family Trust, which owns 87% of the company.

AFT, which was founded in 1997, made a loss of $12.9 million for the year ended March 31, on revenue of $56.2 million. The company has achieved a compound annual growth rate in operating revenue of 21% over the past 10 years. It made a loss of $6.4 million for the six months ending September 30, compared to a $6.1 million loss for the same period a year earlier, but improved revenue to $29.5 million from $24.2 million.

The company wants to continue introducing new products to the New Zealand, Australian and South East Asian markets, and expand its products internationally through third-party licensees and distributors. Half of AFT's 2015 revenue was from New Zealand, 47% from Australia and the remainder from the rest of the world – primarily South East Asia where the company began selling in mid-2014. The company sells 109 products across Australia and New Zealand, and had entered out-licensing or distribution agreements in over 35 countries for one or more of its products.

"We believe that our business is set up to perform well on the world stage," said Dr Hartley Atkinson, chief executive and founder of AFT. "In terms of product development, regulatory approvals, licensing and distribution, we've developed a good track record. Raising new capital is really about taking this business to the next level and advancing our portfolio of innovative development products."

(BusinessDesk)

Sophie Boot
Tue, 17 Nov 2015

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