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Ortho Clinical Diagnostics Launches IPO at $20 to $23 Per Share

NEW YORK ─ Ortho Clinical Diagnostics on Tuesday provided additional information on its plan to go public on the Nasdaq, saying it is offering 70 million ordinary shares at an initial public offering price expected to be between $20.00 and $23.00 per share, which would amount to between $1.4 billion and $1.61 billion in gross proceeds.

Ortho expects to grant the underwriters a 30-day option to purchase up to 10.5 million additional ordinary shares at the initial public offering price, less underwriting discounts and commissions. 

The firm said it intends to use the net proceeds from the offering to redeem $160 million in aggregate principal amount of 7.375 percent senior notes due in 2025 and $270 million in aggregate principal amount of 7.250 percent senior notes due in 2028. Ortho added that it further intends to use the net proceeds to repay borrowings under its dollar term loan facility and for working capital and general corporate purposes, which may include further repayment of indebtedness.

The offering is being made through an underwriting group led by JP Morgan, Bank of America Securities, and Goldman Sachs, who are the lead bookrunning managers; Barclays, Morgan Stanley, Citigroup, Credit Suisse, UBS Investment Bank, Evercore ISI, and Piper Sandler, who are joint bookrunning managers; and ING, Macquarie Capital, Nomura, TCG Capital Markets, Drexel Hamilton, HC Wainwright, Ramirez, and Siebert Williams Shank, who are co-managers.

Ortho has applied to have its ordinary shares approved for listing on the Nasdaq under the symbol OCDX.

In 2014, the Raritan, New Jersey-based company was acquired by private equity firm the Carlyle Group from Johnson & Johnson for approximately $4 billion, and solely focused on delivering IVD products and servicing a diagnostic customer base.