[Edaily Reporter Kim Kyung-eun ] SAMSUNG BIOLOGICS(207940)is trading lower in early trading following the announcement of a 3 trillion won rights offering.

According to MP Doctor on the 28th, as of 9:26 a.m. today, SAMSUNG BIOLOGICS is trading at 1,496,000 won, down 98,000 won (6.15%) from the previous trading day.

Concerns over share dilution resulting from the rights offering are believed to be dampening investor sentiment.

SAMSUNG BIOLOGICS announced that it has decided to conduct a rights offering followed by a public offering of unsubscribed shares, issuing 2.27 million new common shares. The planned issue price is 1,322,000 won per share, and the total amount to be raised is 3.009 trillion won.

The number of new shares issued represents 4.904% of the existing 46,290,951 shares outstanding. A 15% discount has been applied to the planned issue price.

Of the funds raised, 2.7062 trillion won will be invested in the acquisition of Polypeptide Group, a global contract development and manufacturing organization (CDMO) specializing in peptides. The remaining 294.8 billion won is scheduled to be used for the expansion of the Second Bio Campus in Songdo, Incheon.

John Lim, CEO of SAMSUNG BIOLOGICS, stated, “We carried out this rights offering to lay the groundwork for our leap toward becoming a top-tier global CDMO,” adding, “We will do our utmost to ensure that this leads to enhanced corporate value by steadfastly pursuing the expansion of our three core pillars: the acquisition of Polypeptide Group and the expansion of the Second Bio Campus.”