(Yicai Global) July 23 -- Chinese contract drug researcher and developer Asymchem Laboratories is raising the price of its additional share offering due to recent gains of nearly 90 percent in its stock price, potentially scaring off the original investor Hillhouse Capital Management.

Asymchem still intends to raise CNY2.3 billion (USD328.7 million) through a private placement scheme, but due to “changes in the capital market environment,” it has now decided to adjust its offering price, the Tianjin-based firm said yesterday.

In February, the drugmaker announced that it was selling a 7.5 percent stake to venture capital firm Hillhouse for CNY2.3 billion at CNY123.56 (USD17.66) apiece.

Since the news was announced on Feb. 16, the firm’s shares [SHE:002821] have appreciated by almost 90 percent to CNY234 (USD33.41) as of this afternoon.

After careful consideration, Asymchem has now decided to change its offering price to no less than 80 percent of the average trading price of the company's stock 20 days prior to the benchmark pricing date, the firm added.

The new offer is now open to up to 35 institutional investors, the firm said. Previously in February, it had specified that Hillhouse was the only investor.

Under the previous arrangement, Hillhouse agreed to help facilitate deals between Asymchem and the innovative drug firms in which it invests. However, whether Beijing-based Hillhouse will now get cold feet is not yet known.

Editor: Kim Taylor