SEOUL: Samsung Biologics Co Ltd, the biopharmaceutical contract manufacturing affiliate of Samsung Group, is expected to apply on Aug 11 for stock exchange approval of what is set to be South Korea’s biggest IPO this year, two bourse officials said. The initial public offering (IPO) is estimated by analysts to have a size of about 2-3 trillion won (US$1.8-US$2.7 billion). The officials from the Korea Exchange declined to be identified by name as they were not authorised to speak to media.
A Samsung Biologics spokesman declined to comment on Monday. Samsung Biologics plans to use the funds to increase its production capacity, a company spokesman previously told. It already plans to double its yearly production capacity to 360,000 litres by 2018 from its current 180,000 litres. Samsung Biologics has contracts to make biotech drugs for companies like Roche and Bristol-Myers Squibb through to 2020.
Since breaking ground in 2011 on its first bioreactor plant construction, the company currently has the world’s third largest capacity among biotech contract manufacturers after Switzerland-based Lonza and Germany’s Boehringer Ingelheim Group, the company said. More than 97% owned by Samsung Group’s de facto holding company Samsung C&T and Samsung Electronics Co Ltd, Samsung Biologics has a biosimilar development subsidiary called Samsung Bioepis Co Ltd.