Bioceres, an Argentina-based crop improvement technology provider that counts agribusiness Monsanto as an investor, has set the range for an initial public offering in the US that could raise up to $142m.
The offering is set to consist of approximately 11.8 million American depositary shares issued on the New York Stock Exchange, priced between $10 and $12.
Bioceres produces seeds, seed traits and treatments as well as biological products and fertilisers. It made a $5.2m net loss in 2016 from $44.3m in revenue, and a $2.9m loss from almost $35m in revenue for the three months ending in September 2017.
Just over $15m of the proceeds have been earmarked for debt repayments, while a further $10m will go to expanding the company’s seed and integrated products business, EcoSeed.
Bioceres will invest $5m in enhancing its agro-industrial biotech products division and $15m will go to a mandatory call option to buy a 10% stake in Rizobacter, the soybean biological product supplier in which it acquired a majority stake in late 2016.
Monsanto holds a 1.7% stake in Bioceres having joined investment management firm BAF to provide it with $16.9m in convertible note financing, and that share is set to be converted to equity and diluted to 1.5% through the offering.
BAF, which also supplied bridge financing to Bioceres, owns the equivalent of 8.7% of the company, and that stake will be cut to 7.8%.
Jefferies, Piper Jaffray, Santander Investment Securities, SunTrust Robinson Humphrey and Mirabaud Securities are the underwriters for the offering. They will have the option to buy an additional 1.77 million shares, which could lift the IPO to about $163m.