Samsung BioLogics Co Ltd, a contract manufacturer of biotech drugs for global pharmaceutical firms, said on Tuesday its initial public offering is expected to raise as much as $2 billion in what is set to be South Korea’s third-largest IPO. The listing is aimed at helping fund an ambitious expansion in production capacity to make it the world’s largest contract manufacturer.
The offering of about 17 percent of the company is expected to consist of a new share issue of 11 million shares and the sale of 5.5 million existing shares by Samsung Electronics Co Ltd. With an indicative pricing range of 113,000 won-136,000 won per share, the offering is expected to raise 2.25 trillion won ($2 billion). BioLogics said 780 billion won of the proceeds will be used for factory investment, while another 400 billion won will be invested in biosimilar drug developer unit Samsung Bioepis.
Samsung Electronics is the second-largest shareholder in BioLogics after Samsung C&T Corp, the de facto holding company for the Samsung Group. C&T and related shareholders will own 74.93 percent of the company after the listing. BioLogics expects to announce final pricing for the IPO on Oct. 28. This comes after Samsung electronics resumed the sale of ‘safe’ Samsung Galaxy Note 7 smartphones.
With inputs from Reuters