AAA Mitsui looks to feed from BioAmber IPO

Mitsui looks to feed from BioAmber IPO

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US-based chemical feedstocks company BioAmber filed with the US Securities & Exchanges Commission on Monday for a proposed initial public offering (IPO). A price for BioAmber’s shares is yet to be determined but the IPO is expected to raise up to $150m.

In addition to the funds to be raised from the IPO, Japan-based conglomerate Mitsui will be making an equity investment in BioAmber, according to the filing. Mitsui participated in BioAmber’s $45m series B round in May through its corporate venturing unit, Mitsui Ventures, and owns 13% of BioAmber’s stock.

The series B round was led by venture capital (VC) firm Sofinnova Ventures, which owns 30.9% of BioAmber’s stock. Naxos Capital Partners, which co-led the series B round, currently owns 33.5%.

BioAmber was originally spun-off from nutritional supplements company Diversified Natural Products in December 2008, under the name of DNP Green Products. After acquiring the shares from its BioAmber joint venture with agribusiness firm ARD, DNP Green Products was renamed BioAmber in 2010.

By that point, BioAmber had raised $12 from a series A round in 2009 participated in by Mitsui and Sofinnova, as well as Samsung Ventures – the corporate venturing unit for electronics conglomerate Samsung – automotive corporation Toyota and real estate group the Clifton Group among others.

BioAmber, which converts feedstocks into chemicals to be used in plastics, food additives and personal care products, will use the proceeds from the IPO chiefly to construct facilities in Canada and Thailand, with the rest going towards general working capital including possible investments and acquisitions.

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