Shares of WuXi Biologics (Cayman) Inc. (SEHK:2269) fell after the company said a major shareholder plans to trim its stake in the biotech platform. The Hong Kong-listed company shed as much as 5.8% January 17, 2023, paring year-to-date gains to 17%. It was one of the top laggards among blue chips, underperforming a 1.0% drop in the city's broader Hang Seng Index.

Wuxi Biologics said that shareholder Wuxi Biologics Holdings Ltd., an entity in which Wuxi Chairman Ge Li holds a majority voting stake, plans to place 56.0 million shares at HKD 71.00 ($9.09) each. The placement price represented a 3.9% discount to Wuxi Biologics shares' most recent closing price of HKD 73.90. If the block sale of a 1.3% stake is completed, the shareholder's stake in Wuxi will drop to 13.82% from 15.14%, Wuxi Biologics said.

Morgan Stanley is advising on the placement.