Agrinos AS, the biological crop-additives company part-owned by Syngenta AG, said sales growth may accelerate next year and predicted revenue in 2012 will double to more than $60 million.
Agrinos’s pace of growth next year “could be higher than 2012,” Chief Executive Officer Tom Einar Rysst-Jensen said in an interview today. The partnership with Syngenta “will accelerate the rapid development of our products,” as the Lyasker, Norway-based company targets an initial public offering in the second half of next year.
Agrinos may boost its equity by offering as many as 6 million new shares worth $45 million before the IPO, Rysst-Jensen said. The company has a market value of 1.8 billion kroner ($309 million) on Norway’s over-the-counter market, and this figure would be “just the starting point” in an IPO, the chief said in an August 6 interview.
Syngenta announced this month that it would invest $10 million in Agrinos and put an observer on the company’s board. From the first quarter of 2013 the world’s largest maker of crop chemicals will distribute Agrinos’s high yield technology product which improves a plant’s uptake of nutrients from the soil.
Agrinos’s bio-stimulants are made from naturally occurring amino acids and micronized chitin, a polymer extracted from leftover tropical shrimp heads. Syngenta and Agrinos are in the second year of testing the same technology for crop protection on potatoes and cereals, and may further roll out testing into corn and rice, Rysst-Jensen said.
Syngenta is the largest industrial investor in Agrinos. The Norwegian firm’s stock has gained 16.3 percent this year in gray-market trading.