Samsung Biologics to raise $2.6 bn in rights issue

The firm will use $970 million of the capital to buy nearly a 50% stake in Bioepis, giving it full ownership

Samsung Biologics (Courtesy of Yonhap News)

Ye-Jin Jun 1

2022-04-12 13:16:01 ace@hankyung.com

Rights offerings

Samsung Biologics Co., a global contract development and manufacturing organization (CDMO) and a biotech division under the Samsung Group, is set to raise 3.2 trillion won ($2.6 billion) in a rights offering for existing shareholders.

The biotech received subscriptions from employee stockholders and existing shareholders April 7-8 and the competition ratio reached 100.25%. The firm was planning to issue a total of 5.01 million shares, and the stockholders subscribed to 5.02 million shares. It won’t issue forfeited shares or hold a public subscription. The due date of the payment is Friday of this week, and the new stocks will be listed on April 28.

The rights offering was boosted as shareholders expect the company’s competitiveness will be enhanced by it owning the entire stake in Samsung Bioepis Co., industry officials said. Biologics' new share price, 639,000 won, also attracted investors as it is around 25% less than the current stock price, the officials added.

Two major shareholders of Samsung Biologics, Samsung C&T Corp. and Samsung Electronics Co., also participated in the rights offering. Samsung C&T, the largest shareholder owning a 40.4% stake in the biotech, will buy 38.02% of the new stocks for 1.2 trillion won. Samsung Electronics, the second-largest shareholder owning a 29.3% stake, will purchase 27.56% of the new stocks for 992.1 billion won.

Samsung Biologics shares skidded to around 700,000 won at end-January and rebounded to more than 800,000 won at end-March amid expectations that it will consolidate the global top CDMO position through the rights offering. The biotech’s stock closed at 801,000 won with a 0.99% decline on April 11.

Of the 3.2 trillion won of capital to be raised, the company will use 1.2 trillion won to purchase Samsung Bioepis shares. Samsung Biologics is in the process of buying nearly a 50% stake in the biosimilar joint venture from US biotech Biogen Inc. for $2.3 billion.

Write to Ye-Jin Jun at ace@hankyung.com
Jihyun Kim edited this article.