Apotex Health jumps 17% on debut in Canada's biggest IPO in years

Apotex Health Corp. shares surged 17% on their Toronto Stock Exchange debut Wednesday, after the Canadian drug maker priced the country's biggest initial public offering in years at C$24 a share, raising C$1.3 billion.

"The strong debut reflects investor appetite for profitable healthcare businesses with a clear use of proceeds," said Tom Brennan, IPO and M&A analyst at Edgen. "Apotex's turnaround to profitability and its plan to deleverage gave institutional buyers confidence to lean in."

The offering consisted of about 35.4 million treasury shares raising C$850 million for the company, plus a secondary sale of stock by existing shareholders that generated C$450 million. Apotex plans to use the net proceeds from the treasury issuance to repay an C$800 million term loan that was fully drawn as of March 31, when the company carried C$2.9 billion in total debt.

The IPO ranks among the largest Canadian listings in recent years, trailing only GFL Environmental's US$1.43 billion IPO in 2020 and PrairieSky Royalty's US$1.54 billion listing in 2014, according to LSEG data. It also comes close to Telus International's 2021 IPO, which raised nearly US$1.1 billion including overallotment shares. The strong reception signals a recovery in Canada's equity capital markets, which have seen increased activity in 2026 after a prolonged drought, fueled by record highs for Toronto stock indexes and improving business confidence despite lingering trade uncertainties with the U.S.

Balance Sheet Reset

Apotex reported revenue of US$3.5 billion and net income of US$374 million for the fiscal year ended March 31, a sharp reversal from a net loss of US$147 million a year earlier on revenue of US$2.9 billion. The improved financial profile helped the company price its upsized offering of 54.2 million shares at the top of its targeted range. Underwriters, led by RBC Capital Markets, TD Securities and Bank of Nova Scotia as co-lead managers, have the option to buy up to an additional 8.1 million shares at C$24 apiece to cover overallotments. Closing is expected on or about June 16.

Founded in 1974 by Barry Sherman, Toronto-based Apotex is Canada's largest domestic pharmaceutical company with a portfolio spanning generic drugs, biosimilars, over-the-counter health products and branded pharmaceuticals. The company operates across the Americas with regional offices in the U.S., Mexico and India. The listing provides Apotex with growth capital and a public currency for future acquisitions, while giving existing shareholders a liquidity event after decades as a private company.

This article is for informational purposes only and does not constitute investment advice.