Samsung Biologics Unveils KRW 3 Trillion Rights Offering for Expansion Plans

In a significant move aimed at bolstering its market position and growth capabilities, Samsung Biologics, listed on the KRX under the symbol 207940.KS, has announced a rights offering expected to raise an impressive KRW 3 trillion. This capital influx is set to support the company’s ambitious three-dimensional growth strategy, which emphasizes capacity, portfolio diversification, and geographic expansion.

Investment Allocation

The company intends to allocate KRW 2.71 trillion from the rights offering proceeds for the acquisition of PolyPeptide Group, a strategic move that will enhance Samsung Biologics' portfolio by incorporating peptide-based therapeutics, expanding its reach beyond traditional antibody-based modalities. The remaining KRW 290 billion will be dedicated to the expansion of Bio Campus II.

This acquisition comes on the heels of a July announcement in which Samsung Biologics proposed an all-cash bid of CHF 1.46 billion for PolyPeptide Group, solidifying its position to meet the rapidly increasing global demand for a variety of therapeutic modalities.

Capacity Expansion

Following the completion of Plant 5 at the company’s Songdo Bio Campus II, expected in 2025, Samsung Biologics has expressed plans to sequentially launch Plants 6 through 8. This will increase their global manufacturing capacity to an anticipated 1,385,000 liters by 2032, highlighting the company’s proactive approach to scaling its production capabilities in response to market needs.

John Rim, President and CEO of Samsung Biologics, expressed confidence in this capital raise, stating, "Building on our position as a global top-tier CDMO, this capital raise sets the stage for our next phase of growth. We are confident that executing our three-dimensional growth strategy, including the acquisition of PolyPeptide Group and the expansion of Bio Campus II, will deepen our leadership and create lasting value for shareholders."

Structure of the Offering

The rights offering, consisting of approximately 2,270,000 new common shares, will be offered at an indicative price of KRW 1,322,000 per share, reflecting a discount of about 15% from the most recent trading day's reference price. This capital raise is projected to represent approximately 4.90% of the company’s market capitalization based on prior trading values.

Current shareholders will receive the shares on a pro-rata basis, while any shares that go unsubscribed will be offered to the general public. As per the regulations of Korea's Capital Markets Act, a portion of the new shares—20%—is allocated to the employee stock ownership association.

For shareholders who do not wish to exercise their subscription rights, there will be an opportunity to trade their rights certificates in the market. The new shares are expected to be listed on November 30, with the subscription period for existing shareholders scheduled from November 9 to 10 and the broader public offering occurring shortly after, on November 12 and 13.

About Samsung Biologics

Samsung Biologics remains a frontrunner in the contract development and manufacturing organization (CDMO) landscape, offering a comprehensive array of services that extend from late-stage discovery through to commercial manufacturing. With a current biomanufacturing capacity of 785,000 liters across two Biocampuses in Korea, supplemented by an additional 60,000 liters from a facility acquisition in Rockville, Maryland, USA, the firm is well-positioned to meet the evolving demands of the biopharmaceutical industry.

Continuous investments into cutting-edge technologies and expertise allows Samsung Biologics to innovate across multiple therapeutic platforms, including multispecific antibodies and mRNA-based therapies. The company’s operational model emphasizes speed, efficiency, and high-quality output by implementing their ExellenS™ framework, which standardizes processes and enhances digitalization for consistent manufacturing quality.

As it aims to further extend its global manufacturing footprint, which spans across Korea, the U.S., Europe, and Japan, Samsung Biologics remains committed to the safe, timely delivery of biomedicines that cater to the health needs of society while also adopting sustainable practices in their operations.