Samsung Biologics(207940) announced on the 28th a rights offering plan worth 3 trillion won. The funds are to be used to acquire PolyPeptide Group, a Swiss peptide specialist contract development and manufacturing organization (CDMO). A portion will be used to expand the Songdo second bio campus in Incheon.
Samsung Biologics said it plans to issue 2.27 million common shares at a projected price of 1,322,000 won per share on the day. After granting subscription rights to existing shareholders, if there are forfeited shares (shares not subscribed by existing shareholders in the rights offering), it plans a public offering for the remainder.
Under the Financial Investment Services and Capital Markets Act, 20% of the newly issued shares must be allocated to the employee stock ownership association. The record date for new share allocation is Oct. 6. After subscription by existing shareholders on Nov. 9–10, if forfeited shares remain, a public subscription will be held on the 12th–13th. The new shares will be listed on Nov. 30.
The funds to be raised through this rights offering total 3.009 trillion won. Of this, 3.7062 trillion won will be used for the acquisition of PolyPeptide Group, and the remaining 294.8 billion won will be invested as facility funds for expanding the Songdo second bio campus. Earlier, in July, Samsung Biologics decided to acquire PolyPeptide Group for about 2.7 trillion won. PolyPeptide Group produces peptides used as raw materials for obesity and diabetes treatments.
A rights offering raises funds by issuing additional shares, which can affect the stock price in the short term. Samsung Biologics said the burden on small shareholders from the rights offering is expected to be limited because the largest shareholder and related parties hold a 74.3% equity stake. John Rim, CEO of Samsung Biologics, said, "We carried out the rights offering to leap forward as a global CDMO corporations."