Comprehensive M&A data with integrated detailed company information
WuXi AppTec to raise USD 1.7bn
Posted on Wednesday, 25 March 2020 07:22
WuXi AppTec is raising a total HKD 13.19 billion (USD 1.70 million) through an issue of A shares worth CNY 6.5.3 billion (USD 922.99 million) alongside a sale of H stock valued at HKD 774.84 million in the markets.
Zephyr, the M&A database published by Bureau van Dijk, shows the capital increase is the largest targeting the global pharmaceutical, biotechnology and life sciences sectors to have been announced in 2020 to date.
In fact, the Chinese contract research outsourcing provider’s cash call would be the 25th biggest on record by companies operating across the industries.
WuXi AppTec intends to sell no more than 75.00 million new A shares to as many as 35 investors.
The company has hired Morgan Stanley and Huatai Financial Holdings as placing agents for the proposed offering of 68.21 million H stocks to no less than six specific investors.
Pharmaceutical research and development (R&D) service industries within and outside China continue to experience rapid growth with a promising outlook, according to the statement.
This is thanks to active investment in the sector, increasing applications for new drugs, advancement of scientific technology, reform in the industry’s policy and regulations, the emergence of biotech companies and other factors.
According to Frost & Sullivan cited in the statement, the global pharmaceutical R&D services market has risen from USD 77.70 billion in 2014 to USD 115.30 billion in 2018.
It is expected to grow at a annual compound growth rate (CAGR) of about 10.9 per cent from 2018 to reach USD 193.70 billion by 2023.
Within China, the pharmaceutical R&D services market has advanced from USD 8.20 billion in 2014 to USD 16.70 billion in 2018.
It is expected to grow at an CAGR of about 20.9 per cent from 2018 to USD 43.2 billion in 2023.
WuXi AppTec is raising funds to achieve capacity expansion and strengthen its capabilities in the contract development and manufacturing organisation/contract manufacturing organisation segments.
Proceeds will be used to increase its overseas operations, finance merger and acquisitions, including in the US, Europe and Asia Pacific, and to repay bank loans.
Money will also fund the construction of an integrated R&D facility in Changshu and to upgrade other locations.
© Zephus Ltd