Simcere Pharmaceutical to raise HK$1.5bn in share placing and subscription

Simcere Pharmaceutical Group Limited announced a placing of 121,000,000 existing shares and a concurrent top-up subscription of 121,000,000 new shares at HK$12.95 per share. This price represents an 8.03% discount to the closing price on September 1, 2025, and a 6.67% discount to the average closing price over the last five trading days. Morgan Stanley Asia Limited is facilitating the transaction as the placing agent.

Gross proceeds from the subscription are estimated at approximately HK$1,567.0 million, with net proceeds expected to be HK$1,553.5 million. Simcere intends to allocate about 90% of the net proceeds, or HK$1,398.1 million, to R&D-related expenditures, including advancing clinical research and supporting new indication expansions. The remaining 10%, or HK$155.3 million, will be used for working capital and general corporate purposes.

The subscription shares will be allotted under the general mandate, making them exempt from further shareholder approval. The vendor, Simcere Pharmaceutical Holding Limited, has also agreed to a 90-day lock-up period on its shares. This capital raise aims to strengthen the group's financial standing and provide essential working capital.