Alcon stock now listed on NYSE

NEW YORK - Alcon sold nearly $2.3 billion in stock in its initial public offering last week.

The company, which priced 69.75 million shares at $33 apiece on March 21, now trades on the New York Stock Exchange under the symbol “ACL.” As of Monday morning, March 25, the stock was trading at $34.35.

Alcon held the distinction of having the largest IPO this year for exactly one day. On Thursday, Citigroup Inc. sold shares in Travelers Property Casualty Corp. for nearly $3.8 billion. After nearly a decade of private ownership by Nestlé SA, Alcon’s former parent company, few details of the company’s finances were known. Many have now been revealed in the prospectus released in conjunction with the IPO.

In its prospectus, Alcon said that in 2001 it had sales of over $2.7 billion; earnings before interest, taxes, depreciation and amortization of $784 million; and net earnings of $316 million. It had the leading U.S. market share position, based on sales, in many product categories. According to the prospectus, Alcon was first in market share for cataract surgery products, vitreoretinal surgery products, ocular allergy products, combination ocular anti-infective/anti-inflammatory products, ocular anti-infective products, for ocular anti-inflammatory products, for soft contact lens disinfecting solutions and for generic ophthalmic pharmaceuticals through its Falcon Pharmaceuticals business.

In 2001, according to the prospectus, Alcon had more than twice the global ophthalmic sales of its nearest competitor, excluding sales of eyeglasses and contact lenses.

Also in the prospectus, Alcon stated that it has the largest research and development commitment of any eye care company worldwide. It intends to invest more than $1.4 billion in research and development projects over the next 4 years. The prospectus notes the company’s strong track record in converting discoveries into commercially viable products. It says the company has successfully introduced 16 significant internally developed products since 1994. Approximately 45% of sales in 2001 came from products introduced since 1994, the document says.

Upon the completion of this offering, Nestlé will own about 77% of Alcon’s outstanding common shares, or 75% if the underwriters exercise their over-allotment option in full. Nestlé will have the ability to direct the election of members of the board of directors and to determine the outcome of all other matters submitted to a vote of Alcon’s shareholders.

Nestlé has advised Alcon that it currently intends to continue to hold all of the common shares it owns for at least 2 years following the completion of this offering.

For now the board of directors for Alcon will consist of Timothy R.G. Sear, Alcon chairman and president, seven executives from Nestlé, Dr. James I. Cash, Phillip H. Geier, Lodewijk J.R. de Vink, Stefan Basler, Guido Koller and Martin Schneider.

The chief executives of Alcon are Timothy R.G. Sear; Dr. G. Andre Bens, senior vice president, global manufacturing and technical support; Dr. Gerald D. Cagle, senior vice president, research and development; Charles E. Miller Sr., senior vice president, finance and chief financial officer; Fred J. Pettinato, senior vice president, Alcon International; and Cary R. Rayment, senior vice prsident, Alcon United States.

The Alcon prospectus can be found online. Click here.