Diplomat Pharmacy commences IPO

FLINT, Mich. — Diplomat Pharmacy, one of the nation's largest independent specialty pharmacies, on Monday announced that it has commenced its initial public offering of 13.3 million shares of its common stock.  

 

The initial public offering price is currently expected to be between $14 and $16 per share. Diplomat's common stock has been approved for listing on the New York Stock Exchange under the symbol "DPLO," subject to official notice of issuance.

 

Diplomat expects to use the net proceeds from the initial public offering to repay indebtedness and for working capital and other general corporate purposes. 

 

Diplomat is selling 10 million shares of common stock, and certain selling shareholders of Diplomat are selling 3.3 million shares of common stock. The selling shareholders intend to grant the underwriters a 30-day option to purchase up to an additional 2 million shares of common stock to cover over-allotments, if any. 

 

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 and Morgan Stanley & Co. are acting as lead book-running managers. Additional book-running managers are J.P. Morgan Securities and Wells Fargo Securities. William Blair & Co. and Leerink Partners are acting as co-managers.

 

A Form S-1 registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time that the registration statement becomes effective.