July 28 (Bloomberg) -- EcoSynthetix Inc., a renewable chemicals company, sold about C$100 million ($106 million) of shares in an initial public offering to finance research and development and expand production facilities.
The Burlington, Ontario-based company sold about 11.2 million shares for C$9 each, according to sale documents. That was at the bottom of the C$9 to C$11 price range. The stock is expected to start trading Aug. 4 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 27 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 led a group of banks on the sale. The underwriters have the option to sell another 15 percent after the sale closes, bringing the total raised to about C$115 million.
“We’re extremely pleased with the way it went; even though it was a difficult market yesterday it was well over subscribed,” said Chief Executive Officer John van Leeuwen, in a phone interview today. “We’re expecting rapid growth in the industry we’re serving.”
To contact the reporter on this story: Doug Alexander in Toronto at firstname.lastname@example.org