[THE INVESTOR]  The planned initial public offering of Samsung BioLogics could value the company at up to 9 trillion won (US$8.08 billion), a local brokerage said on Oct. 5.

“It could have a market value of about 7.5 trillion won to 9 trillion won as the company is expected to raise 1.8 trillion won to 2.3 trillion won through the public offering,” said Kang Sun-ah, an analyst at KB Investment & Securities.

Samsung BioLogics plans to use proceeds from the share sale on production facilities and buildings, investment into its subsidiary Samsung Bioepis, as well as paying off its debts. 

In a regulatory filing on Oct. 4, Samsung Biologics said it would sell a total of 16.5 million new and preexisting shares, representing a fourth of its equity, priced at between 113,000 won and 136,000 won apiece.

The analyst said the decision that Samsung C&T, the largest shareholder of BioLogics, will not sell a portion of its stake in the IPO is a positive factor to the drug maker. C&T and related shareholders including Samsung Electronics will own 74.93 percent of the company after the listing.

The company will gauge demand for the share sale from Oct. 26 to Oct. 27 and get listed on the main bourse KOSPI in November.

By Park Han-na (hnpark@heraldcorp.com)