BioAmber IPO Aims to Raise Up to $136M

Biotech company BioAmber, which first announced in 2011 that it planned to go public, has lowered the amount that it hopes to raise through its initial public offering.

BioAmber, Inc. plans to offer 8 million shares of common stock at $15 to $17 each through an initial public offering (IPO), according to a Friday filing with the U.S. Securities and Exchange Commission.
 
That equates to $120 million to $136 million that the Plymouth-based company hopes to raise through its IPO. The amount has dropped since 2011, when BioAmber first announced its intention to go public, then hoping to raise up to $150 million.
 
Although BioAmber's regulatory filing does not specify precisely when the company intends to complete its IPO, the document suggests that the company plans to go public sometime this year.
 
BioAmber is a biotech company that uses renewable materials to create sustainable chemicals that can replace petroleum-derived chemicals.
 
The company plans to trade on the New York Stock Exchange under the symbol BIOA. BioAmber intends to use the net proceeds from the offering to construct a facility in Sarnia, Ontario, and for “working capital and other general corporate purposes.”
 
BioAmber has grown its revenues and profits in recent years. Its total revenue increased from $560,000 in 2011 to about $2.3 million in 2012. It also went from a $277,000 net loss in 2011 to a $545,000 net profit in 2012.
 
As of March 31, the company had 54 full-time employees in the United States, Canada, and France.
 
BioAmber’s move comes at a time when IPOs remain scarce in Minnesota. Only two locally based companies completed traditional IPOs in 2012: Maple Plain-based Proto Labs began trading on the New York Stock Exchange and Eden Prairie-based medical device firm Osprey Medical went public through an IPO in Australia. Minneapolis-based IT firm IVDesk, meanwhile, said in October that it would go public through a direct public offering, a less expensive alternative to an IPO and one that is most commonly used by smaller companies.
 
In 2011, two Minnesota companies completed IPOs: Plymouth-based Kips Bay Medical raised $16.5 million in February of that year, and Tornier, an Amsterdam-based medical device company whose U.S. headquarters are in Edina, raised $166 million in an IPO the same month. Eden Prairie-based Bluestem Brands also filed to go public in 2011, looking to raise about $150 million, but later postponed for undisclosed reasons.
 
The two Minnesota IPOs completed in 2011 and 2012 matched the number completed in 2010 and outpaced 2009, when there was only one, and 2008, when there were none.