Samsung Biologics(207940) is plunging 7% on the 28th on news it will pursue a 3 trillion won paid-in capital increase. With new shares to be issued equal to nearly 5% of total shares, concerns about stock dilution are seen as the reason.
As of 9:07 a.m. that day, Samsung Biologics is trading on the Korea Exchange at 1,481,000 won, down 113,000 won (7.09%) from the previous session.
Samsung Biologics disclosed around 8:30 a.m. that it decided on a shareholder-allotted paid-in capital increase worth 3.009 trillion won. The planned number of shares to be issued is 2.27 million, equivalent to 4.904% of the existing issued shares. The expected issue price is 1,322,000 won, applying a 15% discount rate.
About 90% of the funds raised, or 270.62 billion won, will be used for the acquisition of Polypeptide Group. The remaining 29.48 billion won will be used to expand the second Bio Campus, a Samsung Biologics production facility in Songdo, Incheon.
On the 7th of July, Samsung Biologics agreed to acquire Polypeptide Group for 1.46 billion Swiss francs (about 2.7 trillion won). Polypeptide Group is a contract development and manufacturing organization (CDMO) that specializes in producing peptide medicines and has production facilities in Europe, the United States, and India.