FAST NEWS: Akeso raises $247 million through share placement
The Latest: Akeso Inc. (9926.HK) announced Sunday it has entered into placement agreements to issue 31.7 million shares to six investors priced at HK$61.28 per share, representing a 4.99% discount to its closing price the previous trading day.
Looking Up: The company will receive net proceeds of HK$1.92 billion ($247 million) from the placements, which it will use to assist in the clinical development of its core products, as well as for commercialization of its existing approved products.
Take Note: The newly issued shares represent approximately 3.53% of Akeso’s enlarged share capital, meaning existing shareholders will be diluted.
Digging Deeper: Founded in 2012, Akeso is a biopharmaceutical company that develops and sells innovative new antimicrobial drugs. It listed on the Hong Kong Stock Exchange in April 2020. The company achieved its first annual profit in 2023, as licensing revenue made a major contribution together with strong product sales. In May its dual-antibody drug Ivonescimab Injection was approved for sale in China, becoming its third commercialized oncology drug. But its shares came under pressure after it disclosed interim results of phase three clinical trials for the drug by the American Society of Clinical Oncology (ASCO), which led some to believe it was not as effective as expected.
Market Reaction: Akeso’s shares rose on Monday and closed up 2.8% at HK$66.3 by the midday break. The stock now trades near the upper end of its 52-week price range.
Translation by A. Au
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