CStone Pharmaceuticals places shares at 7pc discount, raising over $1 billion

CStone Pharmaceuticals (02616) announced a placement of 118 million shares after trading hours on Tuesday, representing around 7.4 percent of the company’s enlarged issued share capital. 

The gross proceeds from the placement amount to HK$1.06 billion.

The placement price is set at HK$8.97 per share, representing a 6.95 percent discount to the previous closing price of HK$9.64. 

The net proceeds are estimated to be HK$1.05 billion. Of this, 90 percent will be used for further research and development of assets under the company’s Pipeline 2.0, and the remaining will be allocated to general corporate purposes where appropriate.