BRIEF: WuXi AppTec raises $975 Million through share placement at 6.9% discount

Pharmaceutical outsourcing giant WuXi AppTec Co. Ltd. (2359.HK; 603259.SH) announced on Thursday it will raise HK$7.65 billion ($975 million) by placing around 73.8 million new Hong Kong-listed shares at HK$104.27 per share, representing a 6.9% discount to the stock’s previous closing price of HK$112. The new shares account for about 16.01% of the company’s enlarged capital for its Hong Kong-listed stock and 2.51% of its total issued share capital.

WuXi AppTec said around 90% of the proceeds will be used to accelerate expansion of its global footprint and expand production capacity, while the remaining 10% will go toward general corporate purposes.

The share placement comes shortly after the company reported strong first-half results. Revenue for the six months through June rose 20.64% year-on-year to 20.8 billion yuan, while its net profit surged 95.46% to 8.29 billion yuan.

WuXi AppTec’s stock opened lower on Thursday and closed at HK$107.8 by the midday break, down 3.75%. The stock is up 90% year-to-date.

By Lee Shih Ta

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