Arcadia Biosciences, a US-based agricultural biotechnology developer backed by chemical producer BASF, will float on Nasdaq today in a $65.6m initial public offering issuing 8.2 million shares priced at $8 each.
Founded in 2002, Arcadia’s biotechnology enables crops to be grown more efficiently and in a more environmentally friendly way, while reducing production costs at the same time.
Arcadia raised approximately $101m in funding prior to the IPO. BASF Venture Capital, the corporate venturing arm of BASF, participated in a May 2014 $33m series D round led by Mandala Capital that also featured CMEA Capital and Saints Capital, as well as several undisclosed investors.
BASF had already invested in a $15m round in 2008 alongside CMEA, Saints Capital and Exeter Life Sciences, an investment vehicle now named Moral Compass.
Moral Compass is Arcadia’s largest single shareholder, and retains a 49.8% stake post-flotation. Mandala Capital will hold 22.1% while seed producer Vilmorin & Cie will own 4.3%. BASF is not among the company’s notable stakeholders.
Arcadia has not disclosed precise details about how it intends to use the IPO proceeds, only stating it intends to support commercialisation efforts, sales and marketing activities, and that it may invest in or acquire other startups.
Credit Suisse Securities and JP Morgan Securities are acting as joint lead book-running managers, while Piper Jaffray is acting as additional book-running manager. T
he underwriters have been granted a 30-day option to purchase an additional 1.23 million shares. If exercised in full, this would boost the size of the offering to $75.4m.