3SBIO (01530) fell nearly 5% in Hong Kong trading, dropping 4.93% to HK$27.76 by the time of writing, with a turnover of HK$704 million. The decline follows the company's recent announcement of a share placement to raise approximately HK$3.087 billion net.
Earlier this month, 3SBIO disclosed plans to issue 105 million shares at HK$29.62 per share, representing a 6.50% discount to the previous closing price. The placement shares account for about 4.14% of the enlarged share capital.
Proceeds from the placement will be allocated with 80% dedicated to R&D expenses and the remaining 20% for working capital.
In a separate development, 3SBIO announced in November its intention to spin off Minde International, its hair loss treatment subsidiary, for a separate listing. According to analysis, the spin-off could generate short-term investment gains for 3SBIO while allowing the company to focus on its core prescription and innovative drug businesses in the long run. The move is also expected to provide funding for the commercialization of self-developed innovative products and support overseas expansion.
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