Simcere Pharmaceutical Group (HKG:2096) will raise about HK$1.55 billion in net proceeds through a placing and top-up subscription, according to a Tuesday Hong Kong bourse filing.

The deal involves the sale of 121 million existing shares at HK$12.95 apiece by Simcere Pharmaceutical Holding, one of the company's controlling shareholders, followed by the issue of an equal number of new shares to the vendor at the same price.

The placing price represents an 8.0% discount to the last closing price, and a 6.7% discount to the five-day average.

Simcere said 90% of the net proceeds will go toward R&D spending, including advancing clinical research in China and the US and expanding indications for approved drugs.

The rest will be used for working capital and general corporate purposes.