AAA Avantium ventures to public markets in $109m IPO

Avantium ventures to public markets in $109m IPO

Netherlands-based renewable chemicals producer Avantium secured €103m ($109m) yesterday when it floated on the Euronext Amsterdam and Bruxelles exchanges, providing exits to several corporate backers.

The company issued just over 9.4 million shares priced at €11 each, achieving a market capitalisation of approximately €277m.

Underwriters ING, KBC Securities, Rabobank and Oddo et Cie have the option to buy another 1.4 million shares, which would lift the IPO size to $126m.

Avantium develops techniques and processes to convert biological materials into new materials. Its products include PEF, a recyclable plastic made from plant-based industrial sugars that is used in packaging.

The IPO capital will go to commercialising Avantium’s technology, including YXY, which forms the basis of PEF production, and for which the company aims to build a commercial-scale production facility in partnership with chemicals producer BASF.

The offering follows roughly $240m of funding reportedly raised by Avantium, including a $49m round in 2014 backed by beverage producer Coca-Cola, conglomerate Swire Pacific, food and beverage manufacturer Danone and plastics manufacturer Alpla.

Other investors reportedly include pharmaceutical firm Pfizer, chemicals producer Eastman Chemical, corporate-backed VC firm Aster Capital, Sofinnova Partners, De Hoge Dennen, Aescap Venture, Capricorn Cleantech Fund, ING Corporate Investments, Navitas Capital, DFJ Esprit, AlpInvest and EDB Investments.

Swire Pacific held a 7.7% stake through a vehicle called Rise Merit which could be diluted to 3.8% if the full over-allotment option is exercised, while Coca-Cola’s European Refreshments entity owned a 3.9% share that would be cut to as little as 1.9%

Other notable investors include Sofinnova (a 19.9% stake pre-IPO), Capricorn Cleantech (17.6%), ING Corporate Investments (13.8%), Aescap (12.8%), Navitas (6.6%), Aster, a joint venture formed by Alstom, Solvay and Schneider Electric (5.5%) and Timber Invest 1 Coöperatief (5.5%).

Stichting APG Developed Markets Equity Pool, a subsidiary of Dutch pension fund Stichting Pensioenfonds ABP, VC fund PMV Tina Fund and the Belgian state-owned asset manager SFPI-FPIM bought a total of approximately 6.1 million shares in the IPO.

Tom van Aken, CEO of Avantium, said: “Being a listed company will support us to further commercialise our inventions into economic production processes that can be deployed in partnership with leading industrial companies worldwide.

“We welcome our new shareholders and thank them for their trust in Avantium and its management.”

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