Algae biofuel and bioproducts firm Solazyme set for $198m floatation
California biofuel and bioproducts firm Solazyme has announced it is increasing the pricing for its stock offer ahead of an anticipated listing on the Nasdaq today.
| Date Posted | 27 May 2011 |
|---|---|
| Story Source | Business Green |
| Relevant Industries | Biofuels Bio-based Products |
Earlier this month, the San Francisco-based firm said it planned to offer 9.98 million shares of common stock, at a price range of $15 to $17, potentially raising up to $184m. But the company has now confirmed it would be offering 10.975 million shares of common stock, at a price of $18.00 per share, increasing potential returns from the IPO to nearly $200m.
The move is expected to provide the company with the funding needed to accelerate the rollout of its innovative algae-based technology. The company has created algal microbes that feed on sugars in fermenting tanks and can then be used to extract oils. Significantly, the oils can be used for a wide range of applications besides fuel. As a result, the company has partnerships in place with a range of high-profile transport and chemicals firms, including Chevron, Dow Chemical, Qantas, the US Air Force and Unilever.
The company has also demonstrated its technology on a commercial scale, producing 455 metric tons of oil between January 2010 and February 2011, and claiming to have reached a level of efficiency where it can produce fuel for $3.44 a gallon.
The move will make Solazyme the third major biofuel firm to go public in recent months, after Gevo and Amyris, and will further fuel speculation that other biochemicals companies could follow suit.
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