Bora Pharmaceuticals announced yesterday (30th) that it successfully priced its first overseas unsecured convertible bonds (ECB) on August 29, 2024, raising a total of USD 200 million (approximately NT$6.4 billion). This marks the largest amount ever raised by a Taiwanese biotech company through ECBs in the international capital market.
The bonds, which carry a zero-coupon rate, have a maturity of five years and a yield of 2.75%. The conversion price is set at NT$964.60, representing a 30% premium over the closing price on the day of pricing. The bonds will be issued and traded on the Singapore Exchange, with the issuance date scheduled for September 5, 2024.
Bora Pharmaceuticals stated that this ECB issuance represents its first foray into the international capital market, receiving an enthusiastic response from global institutional investors. The offering was quickly oversubscribed, exceeding the target fundraising amount, and attracted significant participation from LYFE High Point Limited, a long-term healthcare-focused fund, which accounted for over half of the issuance. This strong participation reflects the confidence of the international capital market and institutional investors in Bora's business development and future growth prospects.
This ECB issuance aligns with Bora's goal of expanding its global footprint and opens a new channel for the company to raise funds in the international capital market, laying the groundwork for its continued global expansion. To achieve its objective of becoming one of the world's top 10 Contract Development and Manufacturing Organizations (CDMOs), Bora has actively pursued domestic and international mergers and acquisitions in recent years. Since its inception, the company has completed at least ten acquisitions, including two this year alone: the acquisition of the century-old U.S. pharmaceutical company Upsher-Smith (USL) earlier this year, and the acquisition of Emergent BioSolutions' sterile injectable manufacturing facility in Maryland in the second quarter.
In late August, Bora further announced a strategic alliance with Tanvex BioPharma. As part of this collaboration, Tanvex issued new common shares, acquiring the equity of Bora Biotech, which is responsible for Bora's large molecule CDMO business. In return, Bora acquired approximately 30.5% of Tanvex BioPharma's shares, becoming its largest single institutional shareholder. This partnership will enable Bora to gain access to additional resources from Tanvex's U.S. facilities.
Bora stated that the funds raised through this issuance will be used to repay bank loans and further optimize its financial structure, allowing the company to continue investing in advanced technology R&D, strategic alliance evaluations, and strengthening its leadership position in the global CDMO sector. JPMorgan served as the sole global coordinator and underwriter for this overseas convertible bond issuance.
Resource (mandarin): 保瑞海外發債 籌資64億元 拚邁向全球前十大CDMO廠
