Samsung Biologics' W2.7tr share offering draws record W11.44tr in subscriptions

Samsung Biologics' approximately 2.7 trillion won ($2.03 billion) rights offering wrapped up to strong demand, with the general public subscription phase drawing more than 11.44 trillion won in deposits — the largest amount ever recorded for such an offering.

Samsung Biologics said Monday that a total of 9.745 million shares were applied for during the two-day general public subscription held Thursday and Friday.

The competition ratio for the 71,854 remaining shares — including fractional shares — came to 135.6 to 1. Based on the confirmed new-share issue price of 1.17 million won, investors needed to put up about 160 million won in deposits to be allocated a single share. Total subscription deposits reached 11.44 trillion won, setting an all-time record among shareholder-allocated rights offerings that proceeded to a general public subscription round.

Earlier, the existing shareholder and employee stock ownership association subscription held Monday and Tuesday saw 2.198 million shares taken up — 96.8 percent of the 2.27 million shares planned for issuance. With the general public round also fully subscribed, Samsung Biologics successfully completed fundraising of 2.67 trillion won.

The proceeds will be used entirely to acquire Polypeptide Group, a global peptide contract development and manufacturing organization.

Samsung Biologics announced the acquisition of Polypeptide Group in July for 1.46 billion Swiss francs — equivalent to about 2.7 trillion won at the time — the largest merger and acquisition deal in the history of South Korea's pharmaceutical and biotech industry. The company has already secured a 97.98 percent stake through a tender offer and plans to acquire the remaining shares through a compulsory buyout to reach 100 percent ownership.

Despite a partial labor union strike and external uncertainties, the flood of more than 11 trillion won from both existing shareholders and general investors reaffirmed the market's strong confidence in Samsung Biologics' competitiveness in winning contracts from global pharmaceutical majors and its expansion into the peptide business.

The rights offering will be finalized after share payment is made Tuesday, with new shares set to list Nov. 30.