Solazyme, a US-based developer of biofuels through the use of algae backed by a host of strategic investors, has floated above its expected price range to raise $197.6m.
The company issued nearly 11 million shares at $18 each compared to an expected upper range of $17 per share prior to its initial public offering. A further 1.65 million shares can be sold if demand remains strong as it began trading at $20 each.
In March, Solazyme aimed to raise $100m but now said it would issue 11.5 million shares, including 1.5 million if demand is strong enough as a so-called greenshoe allotment, at between $15 and $17 each. At the top end of its pricing range, Solazyme would have an initial market capitalisation of $965m.
The company said it had raised $129.3m in equity and its strategic investors were Bunge, Chevron, Unilever and San-Ei Gen, according to its regulatory filing.
Its other investors are family office Roda Group, investment bank Morgan Stanley and venture capital firms Braemar Energy Partners, Lightspeed Venture Partners, Harris and Harris Group, VantagePoint Venture Partners and Zygote Ventures.
Morgan Stanley and Goldman Sachs underwrote the initial public offering.