GSK has announced plans to float its consumer healthcare business on the stock market in July, confirming listing plans amid market jitters and after rejecting overtures from Unilever.
The new company, which GSK has named Haleon and which is the world's largest consumer health business, would have an initial dividend at the lower end of a 30-50% payout rate, GSK said in a statement.
Haleon is expected to have a net debt to adjusted core profit ratio of up to four times following the demerger but debt would be reduced to less than three times by the end of 2024, part of a pledge to maintain a 'strong investment-grade balance sheet,' GSK said.
Haleon shares will be listed on the London Stock Exchange, with American depositary receipt listed in the United States.
Under a previously unveiled plan, GSK shareholders will receive stock in the new consumer health group amounting to at least 80% of the 68% stake that GSK currently owns in it. Pfizer owns the remaining 32%.
GSK, which will focus on pharmaceuticals and vaccines, would sell the remaining 20% stake in Haleon 'in a disciplined manner' some time after the planned market debut, the group said. Pfizer has also said it would seek to exit its shareholding.
The confirmed IPO plan comes even as the fallout on global trade and finance from the conflict in Ukraine has disrupted the schedule for Europe's and Britain's stock market listings over the next few months.
Delayed large public listings include Spanish bank Ibercaja, German artificial limb maker Ottobock and GCP Co-Living REIT.