FLINT — Diplomat Pharmacy Inc., formerly known as Diplomat Specialty Pharmacy, Monday launched an initial public offering of 13,333,333 shares of its common stock.
Diplomat is selling 10,000,000 shares of new common stock and current shareholders of Diplomat are selling 3,333,333 shares of common stock.
The selling shareholders intend to grant the underwriters a 30-day option to purchase up to an additional 2,000,000 shares of common stock to cover deman beyond the 13.3 million share figure.
The company said it expected its IPO price to be $14 to $16 per share.
Diplomat’s common stock has been approved for listing on the New York Stock Exchange under the symbol DPLO.
Diplomat said it will use the IPO’s proceeds to pay down debt, for working capital, adn for “other general corporate purposes.”
Diplomat will not receive any proceeds from the sale of shares by the selling shareholders, including sales by the selling shareholders pursuant to the underwriters’ overallotment option.
Credit Suisse Securities USA LLC and Morgan Stanley & Co. LLC are acting as lead book-running managers for the offering. Additional book-running managers are J.P. Morgan Securities LLC and Wells Fargo Securities LLC. William Blair & Co. L.L.C. and Leerink Partners LLC are acting as co-managers.
Diplomat serves patients and doctors in all 50 states as the nation’s largest independent specialty pharmacy. Founded in 1975 as a neighborhood pharmacy and headquartered in Flint, Diplomat now focuses on medication management programs for people with complex chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, HIV, specialized infusion therapy and many other serious or long-term conditions.
More at www.diplomat.is.