The Avantor IPO: What You Need To Know

The Street lends plenty of exposure to various medical developments. But one company will soon offer exposure to the broad biotech industry.

The IPO

Avantor, Inc. will issue 154 million shares on the New York Stock Exchange under ticker AVTR, according to the firm’s S-1 filing. Priced between $18 and $21, the offering represents 36.1 percent of outstanding shares.

The lead underwriters include Goldman Sachs, JPMorgan, Bank of America Merrill Lynch, Barclays and Jefferies.

The company qualifies as an emerging growth company under the U.S. JOBS Act, which exempts management from certain SEC disclosure requirements.

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The Company

Founded in 1904, the global supplier supports life sciences, advanced technologies and applied materials companies from discovery through product delivery.

Its product portfolio includes lab equipment, chemicals and clinical trial kits. About 33 percent of its revenue comes from proprietary materials and consumables, while another 40 percent derives from third-party materials and consumables.

Avantor also provides procurement and sourcing, biopharmaceutical scaling, lab and production services for researchers.

The company boasts a presence in 240,000 client sites in more than 180 countries. It also counts among its customers all of the top 10 biotech companies, medtech manufacturers and diagnostic companies; four of the top five semiconductor manufacturers and defense companies; and 19 of the top 20 research universities in the U.S. and Europe.

The Finances

In 2018, management recorded revenue of $5.864 billion for a net loss of $86.9 million. The previous year saw revenue of $1.247 billion and a loss of $112.7 million.