Fosun Pharma Unit to Raise $190 Million From New Share Issue

Shanghai Fosun Pharmaceutical Group, or Fosun Pharma, said research-and-development unit Shanghai Henlius Biotech will raise $190 million from a new share issue.

Shanghai Henlius will issue about 55.4 million shares at 22.71 yuan ($3.46 dollar) per share to a group of investors including Fosun Pharma's subsidiary Fosun Pharma Industrial, the Hong Kong, S.A.R., China-listed company said in a statement to the stock exchange on Wednesday. Shanghai Henlius will use the proceeds for its research and development and daily operations.

Fosun Pharma Industrial will acquire about 14.6 million shares for $50 million. Other investors will buy shares worth $140 million, it said. Fosun Pharma Industrial and Shanghai Fosun New Medicine Research, another subsidiary of Fosun Pharma, will together hold a controlling stake in Shanghai Henlius on completion.