6855.HK
C-MER swings to the red

Biopharmaceutical company Ascentage Pharma Group International (6855.HK) announced Friday that it will offer 7.325 million American Depositary Shares (ADS) in its upcoming U.S. listing at an issue price of $17.25 per ADS. Based on its ratio of four ordinary shares per ADS, the price equals approximately HK$33.57 per ordinary share, representing a discount of approximately 19.60% to the closing price for the company’s Hong Kong-listed stock the previous day.

The underwriters also have a 30-day option to purchase up to 1.1 million additional ADSs. The total of up to 33.7 million underlying shares being sold represents approximately 9.66% of Ascentage’s enlarged share capital. Net proceeds from the offering are expected to total $112 million and could rise to $130 million if the overallotment option is fully exercised.

The company said the funds will be used to seek new drug application (NDA) approval in China for lisaftoclax for the treatment of relapsed/refractory chronic lymphocytic leukemia (r/r CLL), to prepare for the drug’s commercial launch in China, and advance the clinical development of olverembatinib in the U.S. and other countries. It will also use the funds to support R&D of other pipeline candidates, explore future pipeline projects, and for working capital and general corporate purposes.

Ascentage’s stock opened down 9.34% at HK$37.85 on Friday in Hong Kong, and continued to slump to close down 11.1% at HK$37.05 by the midday break.

By Lee Shih Ta

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