Samsung BioLogics Aims to Raise Up to $2.5 Billion From IPO
10 August 2016 - 6:10PM
Dow Jones News
Samsung BioLogics Co., the contract drug manufacturing unit of
South Korean conglomerate Samsung Group, is planning to raise as
much as $2.5 billion from an initial public offering that would
value it at roughly $10 billion, according to people familiar with
the matter.
The company, which manufactures complex biologic drugs on behalf
of clients like Bristol-Myers Squibb Co. and Roche Holding AG,
expects to file this week for approval to list shares in South
Korea, one of the people said. It expects to complete the share
offering in the fourth quarter of this year, the person said.
Samsung BioLogics is expected to offer between 10% and 25% of
its shares to the public based on South Korean listing requirements
and investor demand, meaning the company could end up raising
between $1 billion and $2.5 billion, one of the people said.
The biggest IPO globally this year was in May, when Danish
utility Dong Energy AS raised $2.61 billion.
Samsung announced plans to list the unit in April, without
giving details on the exact timing or size of the IPO.
While Samsung is best known for its crown jewel, smartphone and
semiconductor maker Samsung Electronics Co., the vice chairman and
heir apparent of the conglomerate, Lee Jae-yong, has poured
billions of dollars into the emerging field of biologic drugs. Such
drugs are complex to make because they are based on living cells
used to treat a variety of illnesses, including cancer and
arthritis, differentiating them from simpler, chemically
synthesized drugs like aspirin.
Mr. Lee is betting that biologic drugs can become a new growth
engine for Samsung as the long-term outlook for smartphones and
semiconductors grows more uncertain.
In addition to manufacturing biologic drugs on behalf of other
companies, Samsung has another affiliate, Samsung Bioepis Co.,
which develops near-replicas of existing biologic drugs that are
soon to lose patent protection, called biosimilars. Samsung Bioepis
was on track for an initial public offering on the Nasdaq Stock
Market earlier this year, but the IPO was shelved amid market
volatility at the beginning of the year.
Samsung BioLogics is 51% owned by the Samsung Group's de facto
holding company, Samsung C&T Corp. Samsung Electronics owns
about 47%. Samsung BioLogics owns 91.2% of Samsung Bioepis.
Samsung BioLogics said in May that Korea Investment Holdings Co.
Ltd. and NH Investment & Securities Co. Ltd. will lead the
share sale domestically, while overseas duties will be handled by
Citigroup Inc., J.P. Morgan Chase & Co. and Credit Suisse Group
AG.
Samsung BioLogics is one of the world's largest manufacturers of
biologic drugs by capacity. Late last year, the company broke
ground on a third plant, the world's largest with 180,000 liters of
capacity, and is already considering additional plants.
When the third plant begins operations, expected in late 2018,
Samsung BioLogics will have a drug-manufacturing capacity of
360,000 liters, putting it ahead of rivals Lonza Group of
Switzerland and Germany's Boehringer Ingelheim GmbH.
Write to Alec Macfarlane at Alec.Macfarlane@wsj.com and Jonathan
Cheng at jonathan.cheng@wsj.com
(END) Dow Jones Newswires
August 10, 2016 03:55 ET (07:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Credit Suisse (NYSE:CS)
Historical Stock Chart
From Apr 2024 to May 2024
Credit Suisse (NYSE:CS)
Historical Stock Chart
From May 2023 to May 2024