EcoSynthetix Plans to Raise C$100 Million in Canadian Public Offer in July

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.

To contact the reporter on this story: Doug Alexander in Toronto at dalexander3@bloomberg.net

To contact the editor responsible for this story: David Scanlan at dscanlan@bloomberg.net; David Scheer at dscheer@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.