initial public offerings (IPOs) trading on American exchanges

Tuesday, July 19, 2011

Cathay Industrial Biotech plans a $90 million IPO

Cathay Industrial Biotech, filed with U.S. regulators on Tuesday to raise up to $200 million in an initial public offering of American Depositary Shares.

The Shanghai-based industrial biotechnology producer, plans to price 6.9 million ADRs at $12 to $14 per share for a $89.7 million offering.

In a filing with the U.S. Securities and Exchange Commission, the company said Morgan Stanley, Deutsche Bank Securities and Jefferies would be underwriting the offering.

Cathay Industrial plans to list its shares on Nasdaq under the symbol "CBIO."

The Shanghai-based company said that besides expanding its production and research facilities, it would use the proceeds of the offering to further develop and commercialize biobutanol - an industrial solvent.

The organic chemical company produces plant-based alternatives to specialty chemicals usually made by petrochemical companies. Its drop-in bio products are less expensive to make and can be used in the same systems as their chemical alternatives. Cathay's long-chain dicarboxylic acids (LCDAs) are used in nylon, plastic, lubricants, and powder coatings.

The company is also the world's largest maker of biobutanol, an industrial solvent used in paint, resins, coatings, pharmaceuticals, and food-grade extractants. Major customers include DuPont, IFF, and Novo Nordisk. Cathay traces its roots to 1997.

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