DRI Healthcare aims to raise up to $350 million in London IPO

DRI Healthcare aims to raise up to $350 million in London IPO

DRI Healthcare, an investment company investing in healthcare royalty assets, is aiming to sell up to $350 million of shares in a planned initial public offering in London, it said on Wednesday.

Managed by Toronto-based DRI Capital, an investment manager with $2.6 billion raised across its funds, DRI Healthcare is looking to list on the main market of the London Stock Exchange.

It will use the proceeds of the IPO to fund acquisitions, it said in a statement.

“DRI Capital focuses on sustainable royalties on proven and speciality medicines that benefit from strong intellectual property and regulatory protection,” said Behzad Khosrowshahi, CEO of DRI Capital.

“With global healthcare spending expected to reach $1.5 trillion by 2023, we continue to see compelling growth opportunities in the pharmaceuticals sector and associated increases in sales, development and the approval of new drugs.”

Healthcare royalties are payments made to a patented company or research firm developing a drug in exchange for the right to use it.

British smart meter company Calisen (CLSN.L) raised more than $425 million in its London debut on February 7, the first IPO after a bruising 2019, when the prolonged exit from the European Union discouraged companies from listing.

European IPO volumes hit their lowest level in seven years in 2019, while the number of London IPOs halved, with deals worth $4.82 billion getting over the line, compared with $9.73 billion in 2018, Refinitiv data shows.