Asymchem Laboratories (HKG:6821, SHE:002821) agreed to subscribe for Shanghai Asymchem Biotech Development's newly issued shares for 1.05 billion yuan, according to a Thursday filing on the Hong Kong bourse.
The Chinese pharmaceutical company's Shenzhen shares jumped 6%, while Hong Kong shares rose 2% during Friday's morning trade.
Asymchem's holdings in Shanghai Asymchem, the company's subsidiary, will rise to 83.5% from 83% after the transaction.
Shanghai Asymchem aims to raise its capital to 323.5 million yuan from 228.9 million yuan.
Two other investors committed to contribute to Shanghai Asymchem. Individual investors Gao Ling Qirui agreed to commit 177 million yuan, while Hao Hong pledged 12.7 million yuan.