BRIEF: WuXi XDC to raise $348 million via share placements at 4% discount

Contract drug services provider WuXi XDC Cayman Inc. (2268.HK) on Wednesday announced two share placements to raise a combined HK$2.71 billion ($348 million) in new funds.

The company plans to place up to 22.28 million new shares at HK$58.85 per share, representing a discount of about 4% to its last closing price, raising net proceeds of HK$1.3 billion. The placed shares will account for about 1.82% of the company’s enlarged share capital. In addition, its controlling shareholder, WuXi Biologics (2269.HK), agreed to subscribe for 24.13 million new shares at the same price, raising net proceeds of HK$1.41 billion. Upon completion, WuXi Biologics’ stake in WuXi XDC will increase from 49.81% to 50.78%.

The company said that about 90% of the proceeds will be used to expand its antibody-drug conjugate service capabilities and production capacity, including for construction of a new facility in Singapore, plant expansion in Wuxi, and potential overseas projects. The remaining 10% will be used for working capital and general corporate purposes.

WuXi XDC’s stock opened higher on Wednesday, closing at HK$64.65 by the midday break, up 5.46%

By Lee Shih Ta

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