Add Solazyme (NASDAQ:SZYM) to the list of successful IPOs to hit markets in recent weeks, with stock prices up over 15% in trading Friday. The bio-technologies producer and Algae-based biofuel specialist synthesizer made its entrance to public markets last week, initially offering 11 million shares on the NASDAQ (NASDAQ:NDAQ), priced at $18 a pop. This price level was at the high end of analyst projections and 10% higher than the price listed in the company’s IPO-SEC filing.
Investment Banks Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS) were joint book-running managers of the IPO. Solazyme is expected to set a biotech industry record in raising some $230 million in capital through the move, as the firm is projected to raise an estimated $198 million through sales of shares offered under its IPO, and could potentially bank another $30 million if underwriters sell another 1.65 million shares over the coming weeks.
Solayzme (NASDAQ:SZYM) has garnered its warranted attention from major market players due both to its consistent financial resume and potentially revolutionary bio-fuel technology, which utilizes microbiological techniques, exploiting Algae metabolism to produce sustainable and affordable fuel sources. “Ultimately, Solazyme wants to scale up algae oil production to tackle the biofuel market. Solazyme is looking to commercialize its fuel technology in the 2013 time frame, with a production cost target of $60 to $80 per barrel. To get there, it will have to build a commercial-scale algae plant, which can cost over $100 million.”
The company reported $7.74 million in revenues for the first quarter of 2011, but still posted a net loss of $7.29 million in that time frame. Solayzme has lost $16.28 million on revenues of $37.97 million over the last full year. Today the company will join the Biofuels Digest Index of 30 publicly-traded industrial biotech and biofuels stocks – along with Syntroleum (NASDAQ:SYNM).