(Nasdaq:TARO) is to offer 5.75 million shares for a total of $275 million. The company filed a registration statement with the Securities and Exchange Commission on July 25, 2001 for the offering.
The offering will be led by investment house
Taro proposes to sell 3,200,000 shares. Shareholders propose to sell an aggregate of 1,800,000 shares. Up to 750,000 shares may be sold by Taro upon exercise of the underwriters' over-allotment option. The offering opens after July 26, when a two-for-one stock split comes into effect. Taro manufactures generic and proprietary drugs.
Taro Chairman Barrie Levitt, President Aaron Levitt, and Vice Chairman Daniel Moros are to sell 1.8 million shares for $85 million. They will use the proceeds from the sale of stock to pay the tax for exercising their options.
Following the sale of stock and exercised options, the officers are to own 22% of Taro, compared with 29% prior to the offering.
Investors did not positively respond to Taro?s offering announcement, and on Wednesday after closing, Taro stock lost 8% to $87.4 per share.
Taro posted second quarter revenues for this year of $36.4 million, 49% more than in the parallel quarter in 2000, and 28% more than its revenues in the first quarter of this year. The results beat even the most optimistic forecast released by Merrill Lynch analyst Paul Woodhouse, who had predicted revenues of $35.3 million.
The firm?s gross profit for the second quarter came to $23.8 million, comprising 65% of sales, compared with 60% of sales in the second quarter of 2000. The increase is related to Taro?s new sale of the Clotrimazole and Betamethasone Dipropionate cream, the generic version of Lotrisone, manufactured by the