Wuxi AppTec placement said to have been covered multiple times

Wuxi AppTec placement said to have been covered multiple times

Title: WuXi AppTec Plans to Raise $975 Million via Share Placement

WuXi AppTec Co. has announced plans to raise approximately $975 million through a share placement, aiming to expand its global presence and bolster its contract drug research, development, and manufacturing capabilities. The Shanghai-based company will sell 73.80 million shares at 104.27 Hong Kong dollars each, equivalent to US$13.28 per share. This offering represents a 6.90% discount from the last traded price of HK$112.0 per share.

The share placement is a significant move for WuXi AppTec, following its strong first-half financial performance and an increase in full-year projections. The stock has seen substantial gains in both Hong Kong and Shanghai, with a year-to-date increase of 98% in Hong Kong and approximately 80% in Shanghai.

According to the company, about 90% of the proceeds from the share placement will be allocated to accelerate its global business and capacity building, with the remaining 10% earmarked for general corporate needs. Analysts have expressed optimism about the company's growth prospects, with Citi analyst John Yung noting strong growth visibility supported by increasing backlogs from both domestic and international markets.

Investment banks Morgan Stanley, Citi, and Goldman Sachs are advising WuXi AppTec on the share placement. Citi has raised its target price for WuXi AppTec's stock in Shanghai to CNY119.0 per share and in Hong Kong to HK$130.0 per share, reflecting the positive outlook on the company's future performance.

References
[1] https://www.marketscreener.com/news/wuxi-apptec-plans-to-raise-975-million-via-share-placement-ce7c5fdcda88f127
[2] https://www.morningstar.com/news/dow-jones/2025073017178/wuxi-apptec-plans-to-raise-975-million-via-share-placement