Haleon IPO: GSK gets shareholders' nod; all you should know

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Haleon IPO: GSK gets shareholders' nod; all you should know

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 Haleon IPO: GSK gets shareholders' nod; all you should know
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  • GSK Plc on Wednesday received approval from the shareholders for the demerger of its consumer healthcare arm.
  • The new entity, called Haleon, will be listed on the London Stock Exchange on 18 July.

In what will be the largest listing on the London Stock Exchange in more than a decade, shares of the consumer arm of GSK Plc (LON: GSK), named Haleon, are set to start trading on 18 July. The pharmaceutical giant on Wednesday received a nod from the investors for the demerger of the consumer brands into a new entity. About 99.8% of the investors voted in favour of the demerger.

The new company, which will include brands like Sensodyne, Panadol, and Advil, is anticipated to be looking at a valuation of around £45 billion. Following the listing, it will join its current owner GSK on the blue-chip index FTSE 100.

The listing will also test the strength of the UK's financial markets at a time when they are struggling to keep up. The markets suffered a difficult first half in 2022 due to the record-high inflation and fears of recession. The FTSE 100 registered a decline of 4.5%, while the FTSE 350 shed 7.5% in the six months to 30 June.

Haleon will be listed on the London Stock Exchange on 18 July.

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All about Haleon

Haleon, with 'hale' being a synonym for healthy and 'leon' being the Latin word for lion, will offer products in multiple categories such as pain relief, VMS, respiratory health, oral health, digestive health, etc. It'll have nine multinational brands, including Sensodyne toothpaste, Voltaren pain reliever, and Centrum nutritional supplement. The brands are expected to bring about £10 billion in yearly revenue through sales.

The consumer healthcare business of GSK is its joint venture with American pharma giant Pfizer. GSK owns a 68% stake in the business, while the remaining 32% belongs to Pfizer. GSK will demerge at least 80% of its 68% holding to form Haleon. On the other hand, Pfizer will fully exit its 32% interest in the business after the public listing. Shareholders of GSK will get Haleon shares on a one-for-one basis.

The formation of Haleon will also turn GSK into a pure biopharmaceutical company.

Details of the listing

Haleon will be listed on the same indices as its owner GSK, including the FTSE 100. On 18 July 2022, the company's shares will be admitted for trading on the London Stock Exchange at 8:00 am UK time. At the market's close, the indices with a fixed number of listed companies will be ranked as per the closing prices. The stocks occupying the lowest position will be removed from the respective index after a two-day notice.

Share price performance of GSK

Previously known as GlaxoSmithKline Plc, the company holds a market cap of £91,016.49 million at present. The stocks have given a decent performance in the past few months, while the 12-month return currently stands at 24.82%. The earnings per share is presently at 0.88.

Shares of GSK Plc were 0.06% up at GBX 1,791.20 as of 8:04 am GMT+1 on 7 July 2022.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.


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