HLB Pharmaceutical plans share issue for facility and operating funds

HLB Pharmaceutical plans to issue 10,762,332 common shares in a capital increase, earmarking 55 billion won for facilities and 5.81 billion won for operations, according to a regulatory filing dated Aug. 3.

The company set a planned issue price of 5,650 won per common share, with the final price scheduled to be determined on Sept. 7 under the offering timetable disclosed by HLB Pharmaceutical. Each new common share carries a par value of 500 won, while the company had 32,799,356 issued shares before the planned capital increase.

HLB Pharmaceutical said the proposed transaction would increase its issued share count by 32.8 percent from the pre-increase number of shares reported in the filing. The filing also sets an allocation reference date for the proposed offering and lists zero new shares allocated per existing share in the planned issuance.

The company said 55 billion won of the funds to be raised will go to facility funding, while a further 5.81 billion won is earmarked for its operating funds under the plan.

Existing shareholders are scheduled to submit subscriptions for the new shares from Sept. 10 through Sept. 11 under the company's timetable for the planned capital increase.

The general public subscription is scheduled from Sept. 15 through Sept. 16, following the shareholder application period set out by HLB Pharmaceutical.

Payment for the planned capital increase transaction is set for Sept. 18, while the newly issued common shares are scheduled to list on Oct. 7.

The filing separately sets a listing start date for new-share subscription rights certificates and schedules their delisting for Sept. 2.

Korea Investment & Securities will serve as lead manager for the planned capital increase, with Hana Securities as joint lead manager and Hanyang Securities as underwriter. Korea Investment & Securities has a 60 percent underwriting allocation, followed by Hana Securities at 30 percent and Hanyang Securities at 10 percent.

HLB Pharmaceutical describes its core activities as the manufacture and sale of prescription medicines, contract manufacturing, and the sale of health functional foods.

It is also researching new drugs and improved drugs based on long-acting injectable medicines, as part of its stated business activities in company disclosures.

HLB Pharmaceutical reported consolidated revenue, operating profit and net income for the first quarter of 2026 in information disclosed through the disclosure system. The period's segment disclosures separately covered pharmaceutical manufacturing-and-sales product revenue and merchandise revenue from its pharmaceutical distribution operations as distinct categories. Within the company's manufactured and marketed product lines, cardiovascular products had the largest first-quarter sales, followed in sales by digestive products and antibiotic-antifungal products.

In May 2025, HLB Pharmaceutical acquired a 100 percent stake in Shinhwa Advance, adding pharmaceutical distribution as another business segment within its portfolio.

The acquired distribution business also recorded revenue during the first quarter of 2026, according to information the company provided through the disclosure system.

HLB Pharmaceutical has stopped operating Hyangnam Plant 2 while preparing permits and construction procedures for a new facility, according to company disclosure information. The planned construction is intended to raise production-equipment competitiveness and upgrade good manufacturing practice standards at the plant, the company said in its filing.

In 2021, HLB Pharmaceutical acquired the Hyangnam plant from Samsung Pharmaceutical for planned use as a production base for rivoceranib. Following approval for rivoceranib, HLB Pharmaceutical plans for the plant to take a central role in manufacturing and sales operations related to the drug.