Solazyme Fixes Price for Shares
Solazyme, Inc. announced the estimated share price for its IPO in the Nasdaq Global Market, raising its offering to $183.5 million, almost double the figure filed in March. The company tries to sell about 10 million shares @ $15 to $17 a share. If Solazyme succeeds in this, it would give the company a market cap of around $ 1 billion.
According to Renaissance Capital, a Greenwich, CT, research firm that specializes in the IPO market, Solazyme stock (SZYM) is expected to begin trading on May 23. According to Bloomberg, the stock will be priced on 26th.
Solazyme is in the second phase of the pilot stage for developing algae-derived jet fuels in collaboration with the US Air Force. Solazyme reported $37.1 million in revenue in 2010, mostly from its own products and technology. It produced 455 metric tons of oil between January 2010 and February 2011. For the first three months of 2011 ending March 31, the company generated $7.74 million in revenue, slightly up from $5.76 million for the three first three months of 2010. The production process of the company enables to produce fuel for $3.44 a gallon in a commercial-scale factory, which, ideally, is a plan that can start to move toward reality after the $100 million IPO.
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