Fermentalg IPO raises $55.9 million for commercial development

April 17, 2014


Libourne, France-based Fermentalg, an industrial biotechnology company that specializes in the production of oils and proteins derived from microalgae, has completed a successful IPO on the Euronext regulated market in Paris, issuing a total of 4,486,091 shares, resulting in a capital increase of £40.4 million ($55.9 million US) and taking the company's total market capitalization to £107 million ($148 million US).

Demand for both the Open Price Offer and Global Placement proved very strong among institutional investors from France and abroad, and the offer was oversubscribed by 4.5 times to £135 million, prompting a Board of Directors' meeting to exercise the Extension and Over-allotment Clauses in full. The Offer Price was also set at the top end of the range at £9 per share. Fermentalg's main financial shareholders and Bpifrance Participations invested a total £12 million in the operation.

The proceeds of the capital increase will be used to finance the construction of an 80m3 industrial development unit (estimated budget of around £20 million over two years). The money raised will also allow Fermentalg to recruit the necessary staff to complete this new phase in its development and to pursue other growth opportunities.

The next phase in the company's development will concentrate on high value markets, enabling Fermentalg to rapidly generate the cash flow it needs; the aim being to achieve financial equilibrium over the next four years. The company intends to generate the first product sales from its initial industrial and commercial development in the field of human nutrition by the beginning of 2015.

Pierre Calleja, Founder, Chairman and CEO of Fermentalg, said, "We are delighted with the welcome Fermentalg has been given and the out-and-out success of our market listing. We would like to extend our warmest thanks to the new investors who have signed up alongside us, as well as to our longstanding partners who continue to demonstrate their faith in our future.

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