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Dermapharm Holding Sets IPO Price Range Of EUR 26.00 To EUR 30.00/shr

Dermapharm Holding SE, a manufacturer of patent-free branded pharmaceuticals for selected markets in Germany, sets price range for its envisaged IPO resulting in expected total size of the offering between about EUR 350 million and EUR 404 million.

The offering will comprise a total of 13.46 million ordinary bearer shares with no par value, consisting of 3,840,000 new shares from a capital increase and 7.86 million existing shares offered by the current shareholder. In addition, up to 1.76 million shares from the holdings of the current shareholder may be allocated through over-allotments. Assuming that all new shares are placed and the Greenshoe Option is fully exercised, post-IPO free float would amount to about 25% of Dermapharm's share capital.

The offer period will commence on January 29, 2018 and is expected to end on February 8, 2018. The price range was set at EUR 26.00 to EUR 30.00 per share. The final offer price will be determined based on a bookbuilding process.

Assuming a full placement of all primary shares, Dermapharm would generate primary gross proceeds of between approx. EUR 100 million and about EUR 115 million. The company currently plans to use these proceeds as follows: about EUR 35 million on in-house developments and an expansion of Dermapharm's manufacturing facilities in Brehna, Germany and a new manufacturing facility in Neumarkt am Wallersee, Austria, approx. EUR 20 million on Dermapharm's efforts to increase its international footprint, and between about EUR 40 million and EUR 50 million on the partial refinancing of a bridge loan provided to partially finance the acquisition of

Dermapharm obtained antitrust approval for this transaction sooner than expected, was consequently able to close the acquisition on January 23, 2018 and has proceeded with the integration of Trommsdorff. Dermapharm currently intends to spend any remaining proceeds on general corporate purposes.

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