Chemical reactions

5 October 2016 By Robyn Mak Follow @mak_robyn

As smartphone growth slows, Samsung heir Jay Y. Lee is targeting a nascent market for drugs made from living cells. Selling up to $2 bln of shares in the South Korean group’s BioLogics unit will test investor appetite for a developing technology and an unfamiliar business model.

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Samsung BioLogics, a contract manufacturer of biotech drugs, said on Oct. 4 it planned to raise as much as 2.25 trillion won ($2 billion) through an initial public offering in Seoul.

The company will sell 11 million new shares and 5.5 million existing shares from Samsung Electronics, its second-largest shareholder, at an indicative price range of 113,000 won to 136,000 won per share. The offering is equivalent to 25 percent of BioLogics' enlarged share capital, and will value the company at up to $8.1 billion.

Samsung C&T Corp, the de facto holding company of Samsung Group, is the largest shareholder of BioLogics with a 51.1 percent stake. C&T and related shareholders will own 74.9 percent after the listing.

BioLogics expects to price the IPO on Oct. 28.

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