The Intrepid Investor: How Are Biofuels IPOs Performing and Why?
by Jim Lane (Biofuels Digest) In this two-part series, we look at the IPO market for industrial biotech stocks. …
In Part I, today, we look at the performance of the six IPOs to date in the aftermarket, the Ceres IPO which is ready to price its IPO tonight, and look towards the IPO queue at important changes in Coskata’s recent filings.
In Part II, tomorrow, we look at how Ceres performed, we’ll have an update on Amyris, and we’ll look at the other companies in the IPO pipeline – Myriant, PetroAlgae, BioAmber, Elevance, Genomatica, Enerkem, Mascoma, and Fulcrum Bioenergy.
…In the IPO window that opened in April 2010 with Codexis’ successful IPO, six companies in the biofuels and renewable chemicals sector have gone public, and as a class they are between 8 and 61 percent off their IPO price.
…Since then (last spring), most of the companies have stayed entirely in line with their original plans, as expressed to their investors in there pre-IPO road shows and beyond, and most have stayed in line with their technical and economic targets and on their growth curve. Market reaction? They got crushed.
Accordingly, we can see the current price environment as more of a measure of the public’s appetite for risk (like, about zero), than as a verdict on the technologies and companies themselves. READ MORE