BioAmber Sets Price Range for IPO

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BioAmber Logo.png Jim Lane

 8 million share offering at $15-$17 aims to raise $128 million.

“We are selling 8,000,000 shares of common stock,” begins BioAmber’s latest SEC update, written in IPO-legalese.

“The initial public offering price of our common stock is expected to be between $15.00 and $17.00 per share, which is the equivalent of €11.48 and €13.01 per share, based on an assumed Bloomberg BFIX Rate for USDEUR at the pricing of this offering.

If completed, it would be the first successful IPO in the sector since Ceres (CERE) and Renewable Energy Group (REGI) completed IPOs in 2012. In total, seven companies (Codexis (CDXS), Amyris (AMRS), Gevo (GEVO), Solazyme (SZYM), Ceres, Renewable Energy Group and KiOR (KIOR)) have completed IPOs in this wave. In recent months, Fulcrum BioEnergy, Genomatica, Enerkem and Mascoma have pulled planned IPOs, citing market conditions.

“We have applied to list our common stock on the New York Stock Exchange, where it will trade in U.S. dollars under the symbol “BIOA.” We have also applied to simultaneously list our common stock on the Professional Segment of NYSE Euronext in Paris, where it will trade in Euros under the symbol “BIOA.”

“The underwriters have an option to purchase a maximum of 1,200,000 additional shares to cover over-allotments of shares.”

Latest news from BioAmber

Last November, BioAmber reported that it will be the supplier of biobased succinic acid to the Faurecia-Mitsubishi Chemical partnership for the production of automotive plastics.  This is in response to environmental constraints associated with vehicle weight reduction and the regulations intended to increase the recyclability of materials used in the automotive industry (85% in Europe by 2015) call for increased use of new materials derived from natural resources, which will ultimately replace petroleum-based plastics.

Last October, the Sustainable Chemistry Alliance reported that BioAmber is expected to complete commissioning in 2014 of a new biosuccinic acid plant, now under development in Sarnia, Ontario. “The $80 million project is being constructed at the LANXESS Bio-Industrial Park in Sarnia. The site is located in a large petrochemical hub with existing infrastructure that facilitates access to utilities and certain raw materials and finished product shipment, including steam, electricity, hydrogen, water treatment and carbon dioxide,” the Sustainable Chemistry Alliance newsletter reported.

Financial activity

Last year, BioAmber raised $30 million in its Series C round of financing with $20 million invested in November by Naxos Capital, Sofinnova Partners, Mitsui & Co. Ltd. and the Cliffton Group, and a second tranche of $10 million on February 6th, 2012 closed with specialty chemicals company LANXESS. BioAmber and LANXESS are jointly developing phthalate-free plasticizers and expect to begin sampling succinic-based plasticizers in 2012.

The IPO filing: The Digest’s 10-Minute Guide

Can BioAmber translate a lead in succinic acid’s smallish market into leadership in a vast array of high-priced renewable chemicals? Here’s our 10-minute version of the BioAmber IPO, with a translation of the risks into English.

The latest as filed with the SEC

More on the story via the updates SEC filing, here.

Disclosure: None.

Jim Lane is editor and publisher  of Biofuels Digest and BioInvest Digest where this article was originally published. Biofuels Digest is the most widely read Biofuels daily read by 14,000+ organizations. Subscribe here.


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