WuXi AppTec to Raise $981 Million in Hong Kong Share Sale (1)

WuXi AppTec Co. will raise HK$7.7 billion ($981 million) in a Hong Kong share sale.

The Shanghai-based provider of global drug research, development and manufacturing services will sell the shares at HK$104.27 apiece, a 6.9% discount to Wednesday’s closing price, it said in a statement. The stock fell as much as 6.9% in Hong Kong on Thursday.

The share placement could bring “longer-term upside to its earnings outlook, outweighing any near-term concerns of dilution,” according to Bloomberg Intelligence analyst Jamie Maarten. “Proceeds will finance manufacturing capacity expansion, enhancing competitiveness with global peers like Samsung Biologics and Lonza.”

The company ...