VC-backed Fermentalg raises €40m in IPO

Ellie Pullen
16 April 2014

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French industrial biotech Fermentalg has raised €40.4m in its IPO on the Euronext Paris, giving it a market cap of €106.9m.

The company's stock began trading today on the Euronext under the ticker "FALG".

Fermentalg sold 4.48 million new shares in the IPO at €9 apiece, the top end of its previous indicative price range. According to the company, the offering was oversubscribed by 4.5x, with demand reaching €135m.

The biotech's main shareholders - namely Demeter Partners, Emertec Gestion, Viveris Management, Ace Management, IRDI, BPI France and private investor Picoty Algo Carburants - acquired €12m worth of shares in the offering.

The capital increase will be primarily used by Fermentalg to construct an 80m³ industrial development unit, which the company has estimated will cost around €20m over two years.

The company will also use the funds to look at recruiting additional staff.

CM-CIC Securities and Gilbert Dupont acted as co-lead managers and bookrunners for the flotation, while Brunswick provided legal advice.

Previous funding
Fermentalg first received funding in February 2009, securing €2.25m from Emertec Gestion, CEA Investissement and Aquitaine Creation, according to unquote" data. Picoty also took part in the round.

In March 2011, a further €5.3m was injected into the biotech by returning investor Emertec, Ace Management and Demeter. The latter led the round, investing via its €203m Demeter 2 fund.

In September last year, IRDI and BPI France (then FSI Régions) led a €12m funding round for Fermentalg, with BPI contributing €4.6m in capital from its €150m Ecotechnologies fund.

They were joined by previous investors Demeter, Emertec and Ace, as well as new investor Viveris. Emertec invested via its Emertec 4 fund.

Company
Founded in 2009 and headquartered in Libourne, Fermentalg specialises in the production of sustainable oils and proteins using properties of microalgae.

The company utilises the properties of microalgae to develop molecules used by manufacturers for everyday products, including Omega 3 fatty acids, colouring agents and antioxidants. It serves the human and animal nutrition, cosmetics, green chemistry and biofuels markets.

Fermentalg currently employs 46 staff and generated turnover of €181,000 in 2013.

People
Pierre Calleja is the founder, chairman and CEO of Fermentalg.