Hansoh Pharmaceutical Raises HK$3.92 Billion via Share Placement at HK$36.30 per Share, Stock Drops 7.8%

The total proceeds from the placement are expected to be approximately HKD 3,920.40 million, while the net proceeds (after deducting placement commissions, fees, and charges) will be approximately HKD 3,896.54 million. Based on this calculation, the placement price per share is...PortionThe net price will be approximately HK$36.08.

The placement price is HK$36.30 per placement share, representing a: (i)PortionOn August 19, 2025 (i.e., the day immediately preceding the date of the placement agreement), at a discount of approximately 6.49% to the closing price of HK$38.82 per share as reported on the Stock Exchange; and (ii) the shares immediately prior to the date of the placement agreement (including 2August 19, 2025, being a discount of approximately 3.88% to the average closing price per share of approximately HK$37.76 as quoted on the SEHK for the five consecutive trading days prior to the day immediately preceding the date of the placing agreement.

The Company has committed to the Global Coordinators and the Placement Agents that, during the period from the date of the Placement Agreement to 90 days after the completion date, except for issuances under the Restricted Share Unit Plan, neither the Company nor any person acting on its behalf will (among other things) allot or issue or offer to allot or issue or grant any options, rights, or warrants for the subscription of shares without the prior written consent of the Global Coordinators and the Placement Agents.

Hansoh Pharma Plans to Use the Net Proceeds from the Placement in the Following Ways: (i) Approximately 65% will be used for (a) the research and development of new innovative drugs in therapeutic areas such as oncology, autoimmune diseases, central nervous system, and metabolic disorders, and (b) licensing of innovative drugs and innovative technology platforms; (ii) Approximately 25% will be used for (a) the construction of new production facilities and R&D laboratories for innovative drugs, and (b) upgrading the Group’s existing R&D laboratories and production facilities; and (iii) Approximately 10% will be used for working capital and other general corporate purposes.

On August 19, Ascletis Pharma announced that after the major shareholder's placement for cash and subscription of new shares, the stock price fell for two consecutive trading days by 10%, wiping out market value.Nearly HKD 4 billion. (Gannex Major Shareholder Cashes Out HKD 3.87 Billion, Correction Begins After Surge）

The heat in the secondary pharmaceuticals market has reached its peak, with listed companies routinely reducing holdings to cash out or conducting placements at high points. This is strategically very correct, as they can raise funds through high-point placements and later repurchase shares at lower prices after the stock price retreats. As for the future trend of pharmaceuticals in Hong Kong stocks and A-shares, it will most likely head downward, given that the stock market won't deviate too much from the broader environment.