GIC holds more than 5 percent stake in WCG Clinical: Prospectus

U.S. one-dollar currency notes; taken September 2018.U.S. one-dollar currency notes; taken September 2018.

Singapore sovereign wealth fund GIC holds at least 5 percent of WCG Clinical, according to a prospectus the company filed with U.S. securities regulators Thursday.

GIC, via a wholly owned vehicle called Dein Investment, also is a lender under the company’s second lien term loan facility of US$345 million, which was at 9.0 percent per annum.

WCG, which is seeking a Nasdaq listing, provides services to improve the quality and efficiency of clinical research, with clients including biopharmaceutical companies, contract research organizations (CROs) and institutions. The company was founded in 2012 with backing from Arsenal Capital Partners.

The prospectus didn’t contain details on how many shares WCG Clinical plans to sell or how much it expects to raise in its initial public offering (IPO).

Other shareholders with stakes of at least 5 percent include entities affiliated with Leonard Green & Partners, Arsenal Capital Partners and Novo Holdings, according to the prospectus.

The company’s total capitalization was at US$3.28 billion as of end-March, according to the prospectus.

WCG said the proceeds will be earmarked for general corporate purposes to support its growth, with a portion potentially used to repay indebtedness and/or for acquisition of or investment in technologies, services or other businesses. The company added it doesn’t have any binding agreements for any acquisitions or investments currently.

In May, WCG announced it acquired Avoca Group, a life sciences consulting firm for biopharma, biotech, CROs and clinical services providers, for an undisclosed amount.

From 2018 to 2020, revenue rose around 16 percent on-year, from US$345.6 million to US$463.4 million, with an adjusted ebitda (earnings before interest, taxes, depreciation and amortisation) margin — or adjusted ebitda divided by revenue — of 47 percent in 2020, WCG said.

For the first quarter of 2021, WCG reported revenue of US$137.6 million, up 33 percent on-year from US$103.5 million in the year-ago period. The company posted a 2020 net loss of US$95.3 million due to the impact of a transaction which changed the corporate structure and resulted in a new parent company.

The company also posted a net loss of US$20.6 million in the first quarter of 2021, narrower than a US$30.1 loss in the year-earlier period.

Adjusted ebitda for the first quarter was US$59.1 million, up around 24 percent on-year, WCG said.