Wuxi AppTec, Asia’s largest provider of contract pharmaceutical research, has raised HK$7.70 billion (US$981 million) through a sale of additional shares in Hong Kong as it rides the wave of bullish appetite for Chinese biotechnology shares.
Advertisement
The Shanghai-based company sold 73.8 million new shares to institutional investors at HK$104.27 each, a 6.9 per cent discount to the previous day’s closing price of HK$112 on Wednesday, it said in a filing to Hong Kong’s bourse on Thursday. The stock fell for the first time in eight days after the offer, dropping 5.6 per cent in a declining market to HK$105.70 in Hong Kong, and retraced by 2.6 per cent to 96.27 yuan in Shanghai.
The sale of additional shares, involving the issuance of stock equivalent to a 2.57 per cent stake in the company, was led by Morgan Stanley, Citi, Goldman Sachs and HSBC.
“The proceeds will provide readily available funding for the company to accelerate global expansion and capacity construction, serving as a driving force for its sustained long-term growth,” Wuxi AppTec said in a statement to the Hong Kong stock exchange.
Wuxi AppTec is following the footsteps of other Chinese novel drug developers in tapping the capital markets for funds. Innovent Biologics raised HK$4.27 billion on July 4, Ascentage Pharma sold HK$1.49 billion of shares last week, while Shanghai Junshi Biosciences raised HK$1.04 million last month following Duality Biotherapeutics’ HK$1.64 billion initial public offer in April.
Advertisement
Much of this bullishness has been driven by mainland investors buying shares in Hong Kong-listed Chinese biotech and pharmaceutical firms, according to Tony Ren, head of Asia healthcare research at Macquarie Capital.