GenScript Bio won Hong Kong exchange approval to spin off its ProBio contract-manufacturing arm for a separate Main Board listing while keeping a controlling stake in the unit. The proposal came as the parent's shares fell 4.959 percent.
Back
GenScript Bio to spin off ProBio unit as shares fall 5%
GenScript Bio proposed listing its ProBio contract-manufacturing unit separately on Hong Kong's Main Board, a restructuring that arrived as the parent's shares dropped 4.959 percent.
The exchange's Listing Committee on Aug. 14 confirmed the company may proceed with the proposed spin-off, GenScript Bio said in an exchange filing.
ProBio, an indirect non-wholly owned subsidiary, provides biologics and advanced therapy contract research, development and manufacturing organization services. GenScript Bio will keep a controlling interest in ProBio after the deal, with the unit remaining a subsidiary and its financial results still consolidated into the group's statements.
A separate listing would give ProBio direct access to Hong Kong equity capital to fund its contract manufacturing expansion while GenScript Bio retains consolidated ownership. GenScript Bio shares traded down 4.959 percent, with short selling of $185.29 million equal to 18.762 percent of turnover.
The spin-off separates ProBio's biologics manufacturing value from GenScript Bio's gene-synthesis and biotech operations, giving the CDMO unit its own currency for fundraising and future acquisitions. Investors will watch for the offer price, deal size and listing timetable, none of which the company has disclosed.
This article is for informational purposes only and does not constitute investment advice.
