Will Petroalgae's public issue takeoff !!? 20Petroalgae by no means the market leader, files for IPO at a time when the market is not upbeat.
Not only is Petroalgae not the market leader, it is also not market ready.
In my opinion the $ 200 m offering will not be a great success and will spoil the chances for other companies with reasonably advanced technologies like, Solazyme, Saphire, Solix, Algenol etc
PetroAlgae Inc. (OTCBB: PALG) announced that it has filed a registration statement with SEC relating to its public offering of its common stock.
The market for green companies is pretty weak at present.
Is this the right time ?
More importantly is this the right offering ?
Petroalgae has been making announcements pretty regularly in the recent past. It announced signing up an understanding with a Chile based company recently.
Before that it signed up with a South Korean company.
It has an understanding or arrangement with one of India's largest company called Indian oil to produce algae for oil.
I have not seen any progress in any of these agreements.
Petroalgae has a MOU with a global giant called Fosterwheeler for engineering. That was made a couple of years ago. But that doesnt say much about the issue.
Such a company going for an IPO without a proven model is not good for the industry. This is not just what I feel. Many analysts too feel the same.
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