PYMNTS-MonitorEdge-May-2024

Report: Bankers Say Bausch + Lomb’s IPO Will Be Priced Below Expectations

Bausch + Lomb, IPO, listing

In a move that highlights the constraints of the current market, eye care company Bausch + Lomb will likely price its initial public offering (IPO) at the low end of expectations, The Wall Street Journal wrote Thursday (May 5).

The report said bankers involved in the deal have told investors that the stock will be below the targeted range of $21 to $24 per share.

The company’s goal was to raise as much as $840 million ahead of the listing on Friday. However, it’s already curtailed its forecast valuation to $8 billion, less than half of what it expected before.

The debut is being watched closely as a way to measure the IPO market at the moment. IPOs have been lagging as of late as stocks have been falling for the last several months — a drastic change from the wildfire of IPOs taking place in 2021.

Bausch + Lomb is the first big IPO since private equity firm TPG went public in mid-January. The WSJ noted that it’s a decent test case for the IPO market, because it’s profitable and a well-established name in its industry.

Others on the IPO runway will be watching as well, the report added. Fund managers have reportedly met with various company executives, such as Intel Corp.’s $50 billion or more self driving car unit Mobileye and Steinway Musical Instruments, as both have said they’re looking at IPOs this year.

In related news, GoTo Group recently received the green light to list its shares publicly in an IPO, which could go for as much as $1.1 billion.

Read more: GoTo’s Post-IPO Ascent Is Far From a Done Deal

The IPO would mean the value of stakes would go up to $5 billion. However, there’s a risk that enthusiasm could diminish, which has happened to many other FinTechs going public. For instance, the PYMNTS FinTech IPO Tracker was down 20% at the end of the first quarter.

While GoTo might not end up a busted IPO, the environment is different now, with investors looking to “shoot first and ask questions later,” the PYMNTS report noted.

See also: FinTech IPO Tracker Wraps up 1Q Down 20% YTD

PYMNTS-MonitorEdge-May-2024