Seeking Alpha
Profile| Send Message|
( followers)  

Amyris Biotechnologies (AMRS), a producer of fuels from sugar cane, other grains and organic materials, priced its IPO on 27th September, 2010 at $16 per share, lower than the expected range of $18 - $20 per share generating a first day return of 3.1%.

Business Overview (from prospectus)

We are building an integrated renewable products company by applying our industrial synthetic biology technology platform to provide alternatives to select petroleum-sourced products used in specialty chemical and transportation fuel markets worldwide. We genetically modify microorganisms, primarily yeast, and use them as living factories in established fermentation processes to convert plant-sourced sugars into potentially thousands of target molecules. Our first technology success has come through the development and application of our platform to create microbial strains that produce artemisinic acid, a precursor of artemisinin, an anti-malarial therapeutic.

Offering: 5.3 million shares at $16 per share. Net proceeds of the offering will be used for capital expenditure and genereal corporate purposes.

Lead Underwriters: Morgan Stanley (MS), Goldman, Sachs & Co. (GS), J.P. Morgan (JPM)

Financial Highlights:

Revenue increased by $3.5 million to $26.4 million in the six months ended June 30, 2010 compared to the same period of the prior year...Cost of product sales decreased by $0.7 million to $20.1 million in the six months ended June 30, 2010 compared to the same period of the prior year...Research and development expenses increased by $6.1 million to $23.6 million in the six months ended June 30, 2010 compared to the same period of the prior year...Sales, general and administrative expenses increased by $9.6 million to $18.9 million in the six months ended June 30, 2010 compared to the same period of the prior year...Net loss increased by $11.8 million to $36.5 million in the six months ended June 30, 2010 compared to the same period of the prior year...

Competitors

We expect that our renewable products will compete with both the traditional, largely petroleum-based specialty chemical and fuels products that are currently being used in our target markets and with the alternatives to these existing products that established enterprises and new companies are seeking to produce. Amyris Fuels competes with other distributors of ethanol and ethanol-blended gasoline.

Additional Resources:

Source: Amyris Biotech Prices IPO Below Range