* Would be biggest IPO in London this year
* Market valuation could be about $7.2 bln
* Proceeds used to pay down debt
(Adds CEO and CFO comments, detail, background)
By Dasha Afanasieva and Noor Zainab Hussain
LONDON/BENGALURU, Oct 3 Medical products maker
ConvaTec Ltd plans to raise around $1.8 billion in an initial
public offering (IPO) of new shares on the London Stock
Exchange, it said on Monday, in a test of investor confidence
after Britain's vote to leave the European Union.
The flotation would be the biggest in Britain so far this
year, according to Thomson Reuters Eikon data.
ConvaTec, whose products include wound dressings and
colostomy bags, said it expected at least 25 percent of its
shares would be freely tradeable following the flotation. It
could have a market value of about $7.2 billion.
The company will use proceeds from the listing, which is
expected in late October or early November, to pay down debt.
Global equity deals are down 30 percent this year, with
Britain's surprise vote on June 23 to leave the EU adding to an
uncertain global economic outlook..
However, some companies are pressing ahead with UK listings.
Spain's Telefonica is looking to list about 30
percent of its British mobile unit, O2, sources close to the
matter have told Reuters, while British fitness club chain Pure
Gym Group IPO-GYM.L, waste-management firm Biffa and auto
parts maker TI Fluid Systems are all working on London listings.
ConvaTec Chief Executive Paul Moraviec said the company had
been preparing the IPO for the best part of a year and that it
had not been delayed by the "Brexit" vote.
"It's a very resilient business ... (the IPO) is taking
place as per our plans," he said.
ConvaTec, which was sold by Bristol-Myers Squibb to
private equity firms for $4.1 billion in 2008, did not say how
many shares it would sell, nor the expected price range.
Finance chief Nigel Clerkin said the IPO prospectus would be
released in two or three weeks.
ConvaTec added the offering could also allow its owners
Nordic Capital, Avista Capital Partners and members of the
management team to sell part of their stakes in the company.
Christopher Gent, former CEO of mobile phone group Vodafone
and former chairman of drugmaker GlaxoSmithKline, has been lined
up to be non-executive chairman of the company.
ConvaTec, which has more than 9,000 employees and conducts
business in more than 100 countries, made $828.9 million of
revenue in the six months ended June 30, and adjusted core
earnings (EBITDA) of $226.2 million.
It said banks had committed to new debt financing of about
$1.8 billion and a $200 million revolving credit facility.
BofA Merrill Lynch, Goldman Sachs and UBS Investment Bank
are joint bookrunners and co-ordinators for the offering.
($1 = 0.8906 euros)
(Reporting by Noor Zainab Hussain in Bengaluru and Dasha
Afanasieva in London; Editing by Gopakumar Warrier and Mark