Shares of Genscript Bio (01548) surged more than 5% during the afternoon trading session. At the time of writing, the stock was up 5.07%, trading at HK$34, with turnover reaching HK$869 million.

This rally follows the company's recent announcement of a share placement, offering 77.126 million new shares at a 4.7% discount to the market price. The placement is expected to raise net proceeds of approximately HK$2.33 billion, with the funds earmarked for strategic growth initiatives.

Specifically, about 70% of the proceeds will be allocated to expanding the group's AIDD platform capacity and infrastructure, including the development of automated high-throughput wet laboratory facilities, related equipment, and lab upgrades. Additionally, 20% of the funds will support research and development related to the AIDD platform, digital workflow integration, and global business expansion, while the remaining 10% will be used for general corporate purposes and working capital.

JPMorgan noted that the stock's strength following the placement announcement indicates the market retains significant enthusiasm for Genscript's AIDD business. The firm highlighted that the company announced the placement before the market opened last Friday, which will provide essential capital to expand AIDD-related wet lab capacity and accelerate associated R&D and digital initiatives. JPMorgan maintains a positive outlook and suggests that investors could view recent share price weakness as an opportunity to accumulate positions.