Mascoma Corp., a closely held producer of cellulosic ethanol, is seeking to raise $100 million through an initial public offering.
The company has not applied to list its shares on any exchange under any symbol, Lebanon, New Hampshire-based Mascoma said today in a filing.
Mascoma produces genetically modified yeast and bacteria that produce enzymes to break down plant sugars and ferment them into ethanol. The process combines enzymatic digestion and fermentation into a single step and eliminates the need for purchasing enzymes. This is less expensive than other manufacturing methods, according to the filing.
Mascoma plans to use the proceeds to develop its production process and expand its marketing in the corn-ethanol industry. It is also planning to build two manufacturing plants to convert wood into ethanol.
Oil refiner Valero Energy Corp. in January agreed to invest as much as $50 million in the company’s first $350 million plant and will buy all of the fuel produced at the Kinross, Michigan, facility. It is expected to begin production in 2013 and will produce 40 million gallons (151.5 million liters) a year. It is also planning a second facility in Drayton Valley, Alberta.
The Canadian organic food supplier SunOpta Inc. is Mascoma’s largest shareholder, with a 20.6 percent stake. Mascoma paid $51 million in September for SunOpta’s BioProcess unit, which developed a system to break down organic material into components that can be converted into biofuels.
Other Biofuel IPOs
Khosla Ventures, the venture capital company of billionaire Vinod Khosla, owns 17.5 percent of Mascoma. Khosla backed three other biofuel companies that completed IPOs in the last year, Amyris Inc. (AMRS), Gevo Inc. and Kior Inc.
Other Mascoma shareholders include Flagship Ventures, General Catalyst Group, Kleiner Perkins Caufield & Byers and VantagePoint Capital Partners, according to the filing.
Morgan Stanley & Co., UBS Securities, Credit Suisse Securities LLC, Robert W. Baird & Co. and Cannacord Gennuity Inc. are the underwriters.
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