SEOUL, Aug. 8 (Korea Bizwire) – Samsung BioLogics Co., a biosimilar firm affiliated with Samsung Group, will apply for preliminary approval this week for its initial public offering (IPO), estimated at around 3 trillion won (US$2.68 billion), South Korea’s bourse said Monday.
The firm, one of the world’s largest manufacturers of biosimilar medicine, plans to submit its IPO application on Thursday, according to the Korea Exchange.
It is seeking to be listed on the main Korea Composite Stock Price Index (KOSPI) market within this year.
It would become the first drugmaker to be listed on South Korea’s main stock board in a decade. Its market capitalization is expected to be around 10 trillion won.
Samsung BioLogics is a contract manufacturer of biologic drugs, made from living cells, for global pharmaceutical firms. It owns 91 percent of Samsung Bioepis Co., which develops copies of biotech drugs that are often called biosimilars.
With the proceeds from the planned IPO, Samsung BioLogics wants to double its annual production capability to 360,000 liters by 2018.
The listing, if successful, is likely to give a boost to the local stock market amid a slump of shipbuilding, steel and some other large cap firms.
“The listing of Samsung BioLogics will serve as a chance to attract capital around the stock exchange and provide investors with an opportunity to invest in a promising company,” a Seoul bourse official said.
Samsung BioLogics is one of the so-called Big Three IPOs here this year.
Doosan Bobcat Inc., a construction equipment maker of Doosan Group, is pushing to be listed in mid-October.
Netmarble Games Corp., one of South Korea’s leading mobile game developers, is also likely to enter the KOSPI in the coming months.
“The offering size of the three companies will likely exceed at least 5 trillion won,” the official said.