EcoSynthetix Inc., a renewable chemicals company, plans to sell about C$100 million ($103 million) of shares in an initial public offering to finance research and development and expand production facilities.
The Burlington, Ontario-based company aims to sell 9.1 million to 11.1 million shares for between C$9 and C$11 each, according to sale documents obtained by Bloomberg News. The IPO is expected to be priced in the week of July 25, and the stock will be listed on the Toronto Stock Exchange under the symbol ECO.
EcoSynthetix specializes in biomaterials that can be used in industrial manufacturing to make products such as paint, paper and adhesives, according to a July 5 regulatory filing. The company said it developed processes that make lower-cost “green” alternatives to petroleum-based products using corn, potato, tapioca and other natural feedstocks.
The company was formed to buy a stake in Michigan-based EcoSynthetix U.S., which owns the assets including a research and development facility in Burlington and plants in Tennessee and The Netherlands.
UBS Securities Canada, Canaccord Genuity Corp. and RBC Capital Markets are leading a group of six banks on the sale. The underwriters have the option to sell another 15 percent after the sale closes.
A telephone message left with EcoSynthetix Chief Executive Officer John van Leeuwen wasn’t immediately returned.
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