Samsung Biologics announced a KRW 3 trillion rights offering to fund its acquisition of PolyPeptide Group and expand Bio Campus II. The offering comprises approximately 2.27 million new shares at KRW 1,322,000 each, a 15 percent discount to the reference price.
Samsung Biologics will raise KRW 3 trillion ($2.2 billion) in a rights offering to fund its acquisition of PolyPeptide Group and expand Bio Campus II.
"Building on our position as a global top-tier CDMO, this capital raise sets the stage for our next phase of growth," John Rim, President and CEO of Samsung Biologics, said.
The company plans to allocate approximately KRW 2.71 trillion toward the planned acquisition of PolyPeptide Group, with the remaining approximately KRW 290 billion designated for Bio Campus II expansion. The offering comprises approximately 2,270,000 new common shares at KRW 1,322,000 per share, a discount of approximately 15 percent from the reference price. The total funds represent approximately 4.90 percent of the company's market capitalization based on the previous trading day's closing price.
The rights offering marks Samsung Biologics' first large-scale share sale in four years. The company aims to expand total production capacity to 1,385,000 liters by 2032, with Plants 6 through 8 coming online sequentially after Plant 5 at Songdo Bio Campus II was completed in 2025.
In July, Samsung Biologics announced an all-cash offer to acquire PolyPeptide Group for CHF 1.46 billion (approximately KRW 2.71 trillion), a move that broadens the company's portfolio into peptide-based therapeutics beyond antibodies and ADCs. Peptides are a key ingredient in obesity and diabetes treatments.
The offering will be made to existing shareholders on a pro-rata basis, followed by a general public offering of any unsubscribed shares. In accordance with Korea's Capital Markets Act, 20 percent of the new shares will be allocated to the company's employee stock ownership association, with the remainder offered to shareholders proportionally. Shareholders who do not wish to subscribe may trade their subscription rights certificates in the market.
Shinhan Securities, NH Investment & Securities, KB Securities and Korea Investment & Securities are serving as lead managers. The securities registration statement will take effect on Sept. 30, with new share allocation set for Oct. 6. The subscription period for existing shareholders runs Nov. 9-10, followed by the general public offering subscription Nov. 12-13. New shares are targeted for listing on Nov. 30.
The capital raise funds Samsung Biologics' push into peptide manufacturing and geographic expansion, deepening its competition with global CDMO peers. Investors will watch the Nov. 30 listing for the new shares and the completion of the PolyPeptide acquisition as key milestones.
This article is for informational purposes only and does not constitute investment advice.
