ArborGen cancels IPO citing market conditions, tree biotech firm aimed to raise up to US$92M through proposed sale of 5.12 million new shares
May 12, 2011
– ArborGen Inc. has decided not to proceed with its proposed initial public share offer in the U.S., citing market conditions, 9 News reported on May 11.
The forestry biotechnology company, based in Summerville, South Carolina, is 33.3% owned by New Zealand-based Rubicon Ltd. The IPO would have reduced Rubicon's stake to 27.24%.
The proposed sale of 5.12 million new shares to the public at between $US16 ($NZ20) and $US18 per share would have raised between $US82 million and $US92 million.
ArborGen said on Wednesday that its owners International Paper, MeadWestvaco and Rubicon, had decided not to proceed, in conjunction with Goldman, Sachs & Co and Citigroup Global Markets Inc, who were acting as joint book-running managers for the offer.
The company said in a statement: "All three partners remain committed to the future success of the company and an ArborGen IPO will be reconsidered in the future, when market conditions are more favorable."
The primary source of this article is 9 News, Willoughby, Australia, on May 12, 2011.