(Reuters) -Chinese biotechnology giant WuXi Apptec will raise HK$7.70 billion ($980.93 million) through share placement, in a bid to boost its global expansion, it said on Thursday.
WuXi said the proceeds will be used to fund efforts to build on its existing and new facilities and ramp up its customer service facilities, without providing any further details.
The Shanghai-headquartered company, in its Hong Kong stock exchange announcement, said it will place 73.8 million new H shares at a price of HK$104.27 per share.
The placing price is at a 6.9% discount to the stock’s closing price of HK$112 on July 30 on the Hong Kong stock exchange, WuXi added.
Hong Kong shares of the company fell as much as 6.9% to HK$104.30 by 0237 GMT.
WuXi reported a more than 95% jump in its half year net profit attributable to 8.29 billion yuan ($1.15 billion) on July 28, and raised its full-year overall revenue forecast to 42.5 billion yuan to 43.5 billion yuan from its previous forecast of 41.5 billion yuan to 43 billion yuan.
The biotech giant raised $500 million in convertible bonds last October, and sold its cell and gene therapy manufacturing unit, WuXi Advanced Therapies, to U.S.-based private equity firm Altaris LLC in December for an undisclosed sum.
($1 = 7.8497 Hong Kong dollars)
($1 = 7.1923 Chinese yuan renminbi)
(Reporting by Adwitiya Srivastava and Shivangi Lahiri in Bengaluru; Editing by Alan Barona)
