HK Stock Market Move | CARSGEN-B(02171) opened more than 6% lower, with plans to offer a discount of about 9.5% for rights issue from old to new shares. The net fundraising is approximately 462 million Hong Kong dollars.

CARSGEN-B (02171) opened more than 6% lower, falling 6.48% by the time of publication to HKD 20.5, with a trading volume of HKD 4.72 billion. In terms of news, Keji Pharmaceutical announced this morning that they have entered into an agreement with major shareholder Yijie Biotechnology (the seller) and joint placement agents on May 15 to privately place 23.7 million shares to at least six independent professional investors in a "yellow shoe" manner, representing approximately 3.99% of the enlarged share capital, at a price of HKD 19.84 per share, a discount of approximately 9.49% from the closing price of HKD 21.92 on May 14, with net proceeds of approximately HKD 4.62 billion. The company stated that around 70% of the net proceeds will be used for clinical development and research and development expenses of innovative drugs globally (including in China), including the IND application and clinical trials for allogeneic and autologous CAR-T products; approximately 15% will be used for global research and production equipment and facility expenses; and approximately 15% will be used for operating funds and general corporate purposes, including the establishment of commercialization teams. The board of directors believes that this placement will enhance the financial strength of the group, accelerate the development of the research pipeline, adapt indication expansion progress, and expand shareholder base.