Samsung Biologics rights offering highlights future growth, but stock price drops
Samsung Biologics will issue new shares worth 3 trillion won ($2.17 billion) to finance its planned acquisition of a Swiss-headquartered contract drug manufacturer and the expansion of its manufacturing facilities in Korea. Its shares fell after the announcement on Friday, as the new offering will increase the number of outstanding shares. However, analysts said the capital increase could…
Samsung Biologics plans to raise 3 trillion won ($2.17 billion) through a new share issuance to fund its acquisition of PolyPeptide Group and expand manufacturing facilities in Korea. The company's shares fell following the announcement on Friday, as the capital increase will lead to an increase in outstanding shares. Nevertheless, analysts believe the funds could bolster Samsung Biologics' long-term growth prospects by enabling the company to swiftly enter the rapidly growing market for obesity treatment materials and expand capacity ahead of forthcoming large-scale orders.
The firm will offer 2.27 million new shares, representing 4.9 percent of its current outstanding shares, at a price of 1.322 million won per share, raising a total of 3 trillion won. Of the funds raised, 2.7 trillion won will go towards acquiring PolyPeptide Group, while 294.8 billion won will be allocated to expanding Samsung Biologics' sixth plant in Incheon. PolyPeptide Group is a global contract development and manufacturing organization.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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