Consumer health group Haleon PLC (LSE:HLN, NYSE:HLN) has become the largest company to list in London for over a decade after formally completing its spin-out from GSK PLC (LSE:GSK, NYSE:GSK).
It will not be issuing new shares as part of its flotation. Rather, existing investors in GSK will get one share in the new company for each current one they own.
This will mean GSK shareholders will own around 54.5% of the company on Monday, with the UK drugs giant hanging onto a stake of around 13.5% and Pfizer, which was part owner of Haleon pre-float, holding the remaining 32%.
GSK, meanwhile, has completed a share consolidation, which means the spin-out should have little to no impact on the stock price.
Created by pooling assets previously owned by GSK and Pfizer and bought from Novartis, Haleon describes itself as a dedicated consumer health company.
The company's name, in case you’re wondering, is pronounced ‘Hay-lee-on’.
We are told it is inspired by the merging of the words ‘hale', which means 'in good health' in old English, and ‘leon’, which is associated with the word strength as it is Spanish for lion.
Its revenues are divided between oral health, including toothpaste brands such as Sensodyne; digestive health and pain relief, where brands include Panadol, Advil, Volatol/Voltaren and Tums; and other sectors such as respiratory health.
Last year, it generated sales of £9.5bn. On that basis, it will be the second-largest consumer health company in the world and the only listed pure-play in the space of meaningful scale (until Johnson & Johnson (NYSE:JNJ) lists its consumer health arm, which has been slated for 2023).
It is anticipated to have a debut enterprise valuation of between £40bn to £45bn, including debt, with an equity value of close to £33bn, which will place it safely in the top quarter of the FTSE 100.
The board will be led by chief executive Brian McNamara, who has been CEO of the division since 2016 and spent the previous two-and-a-half decades focused on consumer health at Novartis and Procter & Gamble (NYSE:PG). He will be guided by former Tesco boss Sir Dave Lewis as chair.