The capital raising will help it "build up manufacturing capacity, further research and development capabilities and opportunistically acquire assets to develop its Contract Development and Manufacturing Organization business", GenScript Biotech said in a stock exchange filing late on Tuesday.

Other investors include HighLight Capital, C&D no.7 Holdings - an investment firm affiliated with Chinese government-controlled property developer Xiamen C&D Corp - and CTSII Fund, a service economy-focused fund established by China's commerce ministry, finance ministry and China Merchants Group, according to the filing.

The raising involves issuing about 320 million series C preferred shares in the entity Probio Cayman at 70 cents per share, with GenScript Biotech's subscription of about 43 million shares worth $30 million, the filing said.

Hillhouse Investment-linked entity Zhuhai Fenheng Enterprise Management Consulting Center will subscribe to 40 million shares for a 1.87% stake in Probio Cayman, according to the filing.

The global investment firm in 2021 agreed to purchase $150 million of shares in Probio Cayman in a series A capital raising via two other entities.

The Series C deal, upon closing, would dilute GenScript Biotech's stake in Probio Cayman to 70.32% from 80.34%, GenScript Biotech said.

Investment funds linked to Huatai Securities, GF Securities and China's Industrial Bank were also among investors in ProBio's series C share issuance, the GenScript Biotech filing showed.

Probio Cayman and its subsidiaries recorded revenue of $62.7 million and a pre-tax loss of $21.1 million in the first six months of 2022, the filing said.

(Reporting by Roxanne Liu and Kane Wu; Editing by Jamie Freed)