Hillhouse-backed GenScript ProBio to raise $224 mln from Legend Capital, others

Genscript Biotech

18/01/2023 04:35

BEIJING/HONG KONG, Jan 18 (Reuters) - GenScript ProBio,
a pharmaceutical research and manufacturing service provider
backed by Hillhouse Investment, will raise $224 million from
investors led by Legend Capital, its majority shareholder
GenScript Biotech  1548.HK  said.
        The capital raising will help it "build up manufacturing
capacity, further research and development capabilities and
opportunistically acquire assets to develop its Contract
Development and Manufacturing Organization business", GenScript
Biotech said in a stock exchange filing late on Tuesday.
    Other investors include HighLight Capital, C&D no.7 Holdings
- an investment firm affiliated with Chinese
government-controlled property developer Xiamen C&D Corp - and
CTSII Fund, a service economy-focused fund established by
China's commerce ministry, finance ministry and China Merchants
Group, according to the filing.
    The raising involves issuing about 320 million series C
preferred shares in the entity Probio Cayman at 70 cents per
share, with GenScript Biotech's  1548.HK  subscription of about
43 million shares worth $30 million, the filing said. 
    Hillhouse Investment-linked entity Zhuhai Fenheng Enterprise
Management Consulting Center will subscribe to 40 million shares
for a 1.87% stake in Probio Cayman, according to the filing.
    The global investment firm in 2021 agreed to purchase $150
million of shares in Probio Cayman in a series A capital raising
via two other entities.  
    The Series C deal, upon closing, would dilute GenScript
Biotech's stake in Probio Cayman to 70.32% from 80.34%,
GenScript Biotech said.   
    Investment funds linked to Huatai Securities  601688.SS 
 6886.HK , GF Securities  000776.SZ   1776.HK  and China's
Industrial Bank  601166.SS  were also among investors in
ProBio's series C share issuance, the GenScript Biotech filing
showed. 
    Probio Cayman and its subsidiaries recorded revenue of $62.7
million and a pre-tax loss of $21.1 million in the first six
months of 2022, the filing said. 
 (Reporting by Roxanne Liu and Kane Wu; Editing by Jamie Freed)
 ((Reuters Messaging: roxanne.liu@thomsonreuters.com))