GTCR-Backed Maravai LifeSciences, Sotera Health Rise in Debuts

Michael Hytha

23 Nov 2020, 03:42 PM IST

(Bloomberg) -- Maravai LifeSciences Holdings Inc. and Sotera Health Co. -- both backed by the private equity firm GTCR -- rose in their trading debuts after raising a combined $2.7 billion in initial public offerings.

Shares of Maravai, which raised $1.62 billion in its IPO, climbed 11% from the offering price to $29.85 on Friday, giving the biotechnology company a market value of $2.7 billion. Maravai sold 60 million shares for $27 each on Thursday after earlier marketing 50 million for $24 to $27.

Maravai provides products to enable the development of drug therapies, diagnostics and novel vaccines and to support research on human diseases. Those efforts have included partnering with Imperial College London to help produce a vaccine for Covid-19, it said in April.

The San Diego-based company reported net income of $64 million on revenue of $186 million for the nine months ended Sept. 30, according to its filing. That compared with net income of $249,000 on revenue of $107 million during the same period last year.

The offering was led by Morgan Stanley, Jefferies Financial Group Inc. and Goldman Sachs Group Inc. The shares are trading on the Nasdaq Global Select Market under the symbol MRVI.

GTCR will continue to control Maravai with 81% of the voting power immediately after the listing, according to the company’s filing.

Sotera Stake

GTCR and its affiliates will also own almost 29% of Sotera’s shares after its offering. Private Equity firm Warburg Pincus, with a 43% stake, will remain Sotera’s largest shareholder.

Sotera priced its IPO at the top of a targeted range, selling 46.6 million shares for $23 each to raise $1.07 billion. The shares closed up 9.1% from the offering price to $25.10, giving the company a market value of $6.96 billion.

Based in Broadview Heights, Ohio, Sotera provides sterilization solutions and lab testing and advisory services to the health-care industry.

Sotera had net income of $5.9 million on revenue of $601 million for the nine months ended Sept. 30, compared with net income of $7.3 million on revenue of $585 million for the same period in 2019.

Its offering was led by JPMorgan Chase & Co., Credit Suisse Group AG, Goldman Sachs and Jefferies. Its shares are trading on the Nasdaq under the symbol SHC.