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Samsung Biologics Plant 4. / Provided by Samsung Biologics

Samsung Biologics will conduct a 3 trillion won rights offering to bolster its market dominance in the global contract development and manufacturing organization (CDMO) market. The raised funds will be funneled into acquiring a global peptide CDMO and expanding the Songdo Second Bio Campus in Incheon.

Samsung Biologics announced on the 28th that it held a board of directors meeting and resolved on a rights offering totaling 3.0009 trillion won. This rights offering will be conducted through a shareholder allocation followed by a public offering of unsubscribed shares. The expected number of new shares to be issued is 2.27 million, representing an increase ratio of around 4.9%. The expected issue price is 1,322,000 won per share, reflecting a 15% discount rate.

Through this rights offering, Samsung Biologics plans to accelerate its "three-pronged expansion" strategy spanning production capacity, portfolio, and geographical hubs.

Of the total raised funds, 2.7062 trillion won will be utilized to cover the acquisition payment for global peptide CDMO PolyPeptide Group. Earlier in July, Samsung Biologics announced the acquisition of Swiss peptide CDMO specialist PolyPeptide Group for 1.46 billion Swiss francs (approximately 2.7 trillion won).

Upon concluding the acquisition of PolyPeptide Group within the year, Samsung Biologics will round out a comprehensive business portfolio covering antibodies, messenger RNA (mRNA), and antibody-drug conjugates (ADC), as well as peptides—a cornerstone of the obesity and diabetes treatment markets. It will also significantly broaden its global manufacturing network based on PolyPeptide Group's production facilities in the U.S., Europe, and India.

The remaining 294.8 billion won will be used as capital expenditure for expanding the Songdo Second Bio Campus in Incheon. The company plans to sequentially construct four 180,000-liter facilities from Plant 5 through Plants 6–8, raising its total manufacturing capacity to 1,385,000 liters.

To minimize dilution of shareholder value, the new share issuance ratio for this rights offering was set at around 5%. In accordance with the Capital Markets Act, 20% of newly issued shares are mandatorily allocated to the Employee Stock Ownership Association, with the remainder allotted to all shareholders proportionate to their shareholding ratio. Shareholders not wishing to subscribe can freely trade listed subscription rights certificates, ensuring shareholder autonomy. Any remaining unsubscribed shares following the public offering will be underwritten by the co-lead managers.

Under the anticipated timeline, the securities registration statement will take effect on September 30, followed by the record date for new share allocation on October 6, existing shareholder subscription on November 9–10, general public offering subscription on November 12–13, and new share listing on November 30.

"We decided on the rights offering to lay the groundwork for leaping into a global top-tier CDMO," said John Rim, CEO of Samsung Biologics. "We will do our utmost to drive enterprise value by steadfastly executing our three-pronged expansion, including the PolyPeptide Group acquisition and the Second Bio Campus expansion."

                                                                                                      Moon Jeong-woo