Samsung Biologics is proceeding with a 3 trillion won ($2.25 billion) rights offering, directing approximately 90% of the proceeds toward acquiring PolyPeptide Group, a global peptide contract development and manufacturing organization (CDMO). The remaining capital will fund the continued expansion of its second Bio Campus in Songdo, Incheon.
In a regulatory filing on the 28th, Samsung Biologics disclosed that its board approved the issuance of 2.27 million new common shares. Unsubscribed shares from existing shareholders will be offered to the public.
The company expects to raise 3.009 trillion won in total, setting aside 2.7062 trillion won for the PolyPeptide Group acquisition and 294.8 billion won for capital expenditures. The tentative offering price has been set at 1,322,000 won per share, reflecting a 15% discount. The final price will be determined on Nov. 4 based on prevailing market rates.
Securing a Peptide Foothold via ₩2.7 Trillion Swiss Deal
The primary driver behind the capital raise is securing funding for the PolyPeptide Group transaction initially announced in July. Samsung Biologics agreed to acquire the Switzerland-based CDMO for 1.46 billion Swiss francs (approximately 2.7 trillion won).
PolyPeptide Group specializes in the development and manufacturing of peptide active pharmaceutical ingredients (APIs)—short amino acid chains that serve as critical components in metabolic disease therapeutics, including diabetes and obesity treatments. Upon closing, the acquisition will expand Samsung Biologics’ manufacturing portfolio beyond monoclonal antibodies, messenger RNA (mRNA), and antibody-drug conjugates (ADCs) into the fast-growing peptide market.
The remaining 294.8 billion won will support the construction of Bio Campus II in Songdo. Samsung Biologics plans to build Plants 6 through 8 sequentially following the completion of Plant 5, targeting a total global production capacity of 1.385 million liters by 2032.
Capital Structure, Shareholder Participation, and Market Reaction
The offering ratio is set at 4.904%. Of the 2.27 million new shares, 20% (454,000 shares) will be allocated first to the employee stock ownership association. The remaining 80% will be distributed to existing shareholders of record as of the Oct. 6 allocation date at a ratio of 0.0392737657 new shares per existing share—equivalent to roughly 3.93 new shares for every 100 shares held. Shareholders who choose not to subscribe can trade their subscription rights on the open market.
Samsung Biologics’ controlling shareholders and related entities hold a combined 74.3% stake. While the company has not specified the extent of controlling shareholder participation, retail investor demand will be closely monitored. During a similar 3.2 trillion won rights offering in 2022, major shareholders including Samsung C&T and Samsung Electronics subscribed fully to their allocations, pushing the overall subscription rate past 100%.
Initial market reaction to the announcement was cautious. Samsung Biologics shares traded down 5.21% at 1,511,000 won on the Korea Exchange as of 10:35 a.m. on the 28th, after falling nearly 7% early in the session.
To ensure the full capital target is met, joint lead underwriters—Shinhan Investment Corp., NH Investment & Securities, Korea Investment & Securities, and KB Securities—have agreed to purchase any remaining unsubscribed shares following the general public offering.
The securities registration statement is scheduled to take effect on Sept. 30. Existing shareholder subscriptions will run from Nov. 9 to Nov. 10, followed by the public offering on Nov. 12 and 13. The new shares are slated for listing on Nov. 30.
The capital raise comes as Samsung Biologics maintains strong operational momentum. The company reported consolidated first-half revenue of 2.578 trillion won and operating profit of 1.1672 trillion won, representing year-over-year increases of 28.0% and 28.6%, respectively. First-half net profit rose 35.3% to 899.9 billion won.
