Bioplasticizer feedstock maker BioAmber Inc. hopes to raise as much as $150 million in an initial public offering.
Minneapolis-based BioAmber filed its plan Nov. 14 with the Securities and Exchange Commission. No date has been set for the proposed IPO. Since late 2008, BioAmber has raised about $75 million in funding from investors including Mitsui & Co. Ltd. of Tokyo, Sofinova Partners of Paris and Cliffton Group of Montreal.
BioAmber produces bio-based succinic acid, which can be used as a plasticizer feedstock. To date, the firm has made only sample lots of its material for potential customers, officials said in the filing. In the fiscal year ended June 30, BioAmber lost about $8 million on sales of just under $1 million, most of which came from licensing.
But the firm has big plans, including the building of a 75 million-pound-capacity plant adjacent to a Lanxess AG facility in Sarnia, Ontario. That site is set to open in 2013. Longer-term, BioAmber plans to build a second plant in Thailand through a partnership with Mitsui. A third plant might be built in the U.S. or Brazil, officials said in the filing.
That new capacity will be needed, since officials said in the filing that BioAmber has supply agreements in place for about 185 million pounds of its products over the next five years. They added that their materials can be competitive with conventional products even if the price of crude oil drops to $35 per barrel; the price has been hovering around $100 recently.