(Yicai Global) Oct. 13 -- Asymchem Laboratories’ share price hit an all-time high today after the Chinese contract drug researcher and developer succeeded in raising CNY2.3 billion (USD341.5 million) in a private placement scheme despite upping its original offer price by over 80 percent, the firm said yesterday.

Asymchem's shares [SHE:002821] closed up 4.45 percent at CNY286.60 (USD42.53), after hitting a record high of CNY288.88 in the morning.

New shares were sold at CNY227 (USD34) apiece, 83.7 percent more than the original offer price made by the Tianjin-based company in February. At the time, private equity firm Hillhouse Capital had agreed to buy a 7.5 percent stake at CNY123.56 per share for the target amount of CNY2.3 billion as the sole investor.

However, gains of nearly 90 percent in Asymchem’s stock price by July, fueled by strong demand for pharmaceutical stocks amid the Covid-19 pandemic, forced the company to raise its offer price and open the bidding to more investors despite the risk of jeopardizing the deal with Beijing-based Hillhouse.

Hillhouse has now settled for a 2.39 percent stake for the price of CNY1 billion (USD148.3 million). Eight other institutional investors took part, including US investment bank Goldman Sachs Group, the drugmaker said.

Under the previous arrangement, Hillhouse had agreed to help facilitate deals between Asymchem and the innovative drug firms in which it invests.

Editor: Kim Taylor