Hong Kong-listed WuXi Biologics' controlling shareholder Biologics Holdings has sold a 2.43 percent stake in the company for more than $893 million. WuXi Biologics - China's biggest outsourced biologic drugs services company - had seen its shares rise in price to 10 times what they changed hands for at its initial public offering three years ago.
Biologics Holdings is owned by WuXi's founders and institutional investors. The company is led by WuXi chairman Ge Li. Biologics Holdings.
This was the ninth time the company has sold shares in WuXi Biologics and has raised HK$40.7 billion to date.
Biologics Holdings sold the stake at HK$185 ($23.87) per share - or a 6.7 percent discount over Monday's share price. The company said it sold 33 million shares Tuesday. The share sale reduced the company's stake in WuXi Biologics from 25.77 percent to 23.35 percent. Its shares were last traded in Hong Kong at HK$192.50.
WuXi Biologics priced its listing shares at HK$20.6 each in June 2017. Since the start of the year the stock has more than doubled in price from HK$100.70 a share Jan. 1.
The continued increase in its stock price is attributed to the company's better-than-expected performance over the past two quarters. For its first-half the company reported a 40.7 percent year-over-year increase in adjusted net profit 734 million yuan ($107.8 million).
The spread of the coronavirus pandemic brought new business to WuXi Biologics. The company reportedly signed more than 10 contracts with international clients - which included antibody research for potential treatments for the coronavirus.
WuXi Biologics mainly provides outsourced research and development services to biotech and pharmaceutical companies worldwide. Analysts said demand for its services was expected to accelerate in the coming quarters given the company's capabilities.
