WuXi Biologics to Spin Off Contract Research Unit in $520 Million Hong Kong IPO

The spin-off, named WuXi XDC, will sell 178.4 million new shares to investors at HK$19.90 to HK$20.60 per share, reducing WuXi Biologics' stake to 50.9% to finance the expansion of its contract research and manufacturing services in the biotech industry.

• WuXi Biologics is planning to spin off its contract research and manufacturing unit, WuXi XDC, in a $520 million Initial Public Offering (IPO) in Hong Kong. The IPO could raise as much as HK$4.07 billion.
• 178.4 million new shares are set to be sold to investors at a price range of HK$19.90 to HK$20.60 per share. The listing date for the newly spun-off company is set for November 17.
• Following the spin-off, WuXi Biologics will reduce its stake in WuXi XDC to 50.9%. Wuxi Apptec’s stake will also decrease from about 40% to just under 34%.
• The funds from the IPO will be used to expand WuXi XDC's contract research and manufacturing services in the pharmaceutical and biotechnology industries. This unit provides end-to-end research, development, and manufacturing services related to antibody drug conjugates (ADC) for global customers.
• The IPO is expected to give WuXi XDC direct access to capital markets to finance its operations and future expansions, improving operational and financial management efficiencies.

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