BRIEF: Kelun-Biotech raises $250 million through share placement

Innovative cancer drug company Sichuan Kelun-Biotech Biopharmaceutical Co. Ltd. (6990.HK) announced on Thursday it plans to sell 5.92 million shares through a placement, representing 2.54% of its enlarged share capital. It set the placement price at HK$331.8 per share, representing a 7.58% discount from the stock’s previous closing price of HK$359. The offering is expected to raise HK$1.96 billion ($250 million).

The company said it will use proceeds from the sale for R&D, clinical trials, registration filings, manufacturing and drug commercialization, and to replenish its working capital and for general corporate purposes.

Kelun-Biotech develops and sells innovative drugs, targeting conditions such as breast cancer, non-small cell lung cancer, and gastrointestinal cancers. In 2024, the company recorded revenue of 1.93 billion yuan, up 67.8% year-on-year, while its net loss narrowed by 53.5% to 267 million yuan.

Kelun-Biotech’s shares fell in Thursday morning trading, closing down 6.9% at HK$334.20 by the midday break.

By Lee Shih Ta

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