Chinese drug maker 3SBio plans to raise HK$3.12 billion (US$401 million) by selling a 4.14 per cent stake in the company to fund clinical research in China and the US and expand the global reach of its drug portfolio.
The Shenyang-based biopharmaceutical firm has agreed to sell 105.1 million new shares at HK$29.62 each. The placing price represents a 6.5 per cent discount compared with Monday’s closing price of HK$31.68, according to its filing with the Hong Kong stock exchange on Tuesday.
The share placement follows strong investor appetite for 3SBio shares, which have soared more than fourfold so far this year.
3SBio said the fresh capital was crucial for the research, development, manufacturing and marketing of its innovative therapy pipeline. About 80 per cent of the proceeds would be allocated to research and development-related expenditures, including advancing clinical research in China and the US for early-stage drug candidates, as well as expanding international markets for its commercialised products.
The remaining funds would support working capital and other general corporate purposes, the company said.
3SBio’s shares fell 4.48 per cent to HK$30.26 on Tuesday morning.
