GenScript ProBio Raises USD 224M From Legend Capital
By: Asia Business Outlook Team
GenScript ProBio, a pharmaceutical research and manufacturing service provider backed by Hillhouse Investment, will raise $224 million from investors led by Legend Capital, according to GenScript Biotech, the company's majority shareholder.
The capital raise will help GenScript Biotech "build up manufacturing capacity, further research and development capabilities, and opportunistically acquire assets to develop its Contract Development and Manufacturing Organization business," according to a late stock exchange filing.
According to the filing, 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, finance, and China Merchants Group.
According to the filing, the raising entails issuing approximately 320 million series C preferred shares in the entity Probio Cayman at 70 cents per share, with GenScript Biotech subscribing to approximately 43 million shares worth $30 million.
According to the filing, Hillhouse Investment-linked entity Zhuhai Fenheng Enterprise Management Consulting Center will subscribe to 40 million shares for a 1.87 percent stake in Probio Cayman.
In 2021, the global investment firm agreed to purchase $150 million in Probio Cayman shares in a series A capital raising through two other entities.
When the Series C transaction is completed, GenScript Biotech's stake in Probio Cayman will be reduced from 80.34 percent to 70.32 percent.
According to the GenScript Biotech filing, investment funds affiliated with Huatai Securities, GF Securities, and China's Industrial Bank were among those who purchased ProBio's series C shares.
According to the filing, Probio Cayman and its subsidiaries had revenue of $62.7 million and a pre-tax loss of $21.1 million in the first six months of 2022.