22nd Jan 2020 10:44
(Alliance News) - Hutchison China Meditech Ltd on Wednesday said it is planning to offer USD110 million in new American depositary shares in order to fund research, development and commercialisation of its products.
Shares in Hutchison China were down 2.7% at 440.00 pence in London in morning trading, giving the biopharmaceutical firm a market capitalisation of GBP2.93 billion.
Hutchison China has a portfolio of eight cancer drug candidates in clinical studies and is headquartered in Hong Kong, though dual listed on London's AIM market and the Nasdaq Global Select Market.
The money raised will be used mostly for "ongoing research and clinical development efforts" and to expand the company's commercialisation capabilities.
The American depositary shares each represent five ordinary shares of Hutchison China. The offering depends on market conditions and its price "has not yet been determined".
In addition, Hutchison China will give its underwriters a 30-day option to buy up to USD16.5 million of additional American depositary shares at the public offering price, whatever that will be, minus commissions and underwriting discounts.
BofA Securities Inc, part of Bank of America, is among the joint global coordinators and joint bookrunners for the offering. The other two are Goldman Sachs (Asia) LLC and Morgan Stanley & Co LLC.
As the offering uses existing share allotment authorities, shareholder approval is not needed to proceed.
By Anna Farley; [email protected]
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