Week of April 19 – to – April 23, 2010
This week, biofuel developer Codexis sold shares as part of its much anticipated Initial Public Offering (IPO). The company sold shares for $13, which was on the low-end of the $13 – to – $15 per share range, raising a total of $78 million. The share sale was the first cleantech IPO since A123 Systems went public late last year, raising more than $57 million.
Codexis plans to use the fresh batch of capital to scale production of its biofuel-making enzymes in a bid to eventually go commercial (and become profitable). So far, the company depends on major shareholder Royal Dutch Shell for a majority of its revenues, which are generated as part of a licensing agreement. With the Shell agreement expiring in 2012, the clock is ticking for Codexis, which says it is confident it will become profitable by eventually supplying its enzymes to the biofuel sector and the biotech industry. Since its inception, the company has banked on its ability to supply these two industries as the key to its long term success.