Will BioAmber complete its IPO?
As the industry waits, fingers crossed, the biosuccinic developer sweetens the pot with warrants, lower share prices.
In Canada, BioAmber has reduced the proposed price range for its IPO to $10-$12 per share, down from a $15-$17 range as it seeks to keep the initial public offering on track.
Overall, the company now proposes to raise between $80 million and $110.4 million in the offering, now scheduled for May 13th according to the latest calendar from NASDAQ.
At the offering’s midpoint and excluding the sale of up to 1.2 million shares in over-allotments the company would raise $88 million, or 31% less than its previous SEC filing.
The company’s common stock has been approved for listing on the New York Stock Exchange, where it would trade under the symbol “BIOA” and the company also intends to list the stock on the Professional Segment of NYSE Euronext in Paris.
Credit Suisse, Societe Generale and Barclays are acting as bookrunners on the deal.
With the revised S-1A filing with the SEC yesterday, which revealed the lower target and can be read in its entirety here, the company said that each share of common stock would be sold in combination with a warrant to purchase half of one share of common stock at an exercise price of $11.00 per whole share of common stock.
BioAmber Inc. is the first industrial biotech company to attempt an IPO, defined as an “emerging growth company” under the Jumpstart Our Business Startups (JOBS) Act of 2012. More than 75 percent of companies that completed IPOs in the past year elected that designation which provides, among other benefits, a five-year phase-in until the company has to fully comply with Sarbanes-Oxley provisions.
We’ll explore the impact of the JOBS Act on IPOs, plus the impact of the warrants provisions in the revised filing what it means, and how those work in BioInvest Digest, where you can find a special report on BioAmber.