Bio-based bulk chemicals specialist to list on Euronext

Investment opportunity | Co-development opportunity

The French clean tech company METabolic EXplorer, which specialises in the bulk production of chemicals through bioprocessing, is to list on the Euronext exchange in Paris. The company aims to raise €44 million, selling 5.62 million shares at between €7.30 and €8.50. The offering is equivalent to 30 per cent of the equity.

METabolic EXplorer manufactures bulk chemicals that are used in a broad range of products including fibres, plastics, paints, solvents and second generation biofuels. The company’s fermentation-based technology allows for the one-step production of selected bulk chemical intermediates from renewable feedstocks such as corn, starch, sugar or hemicellulose. This approach is seen as an attractive alternative production route for chemicals that otherwise would be made from non-renewable hydrocarbons.

Apart from the environmental benefits, this results in significantly lower production costs, a reduction in risk and greater flexibility in locating manufacturing sites. METabolic EXplorer’s portfolio currently consists of five bulk chemicals.

These were selected on the basis that it was possible to reduce the cost of production by at least 30 per cent compared with current production methods. The products also ddress large and growing bulk chemical markets, and minimise the risk the risk of cost increases by using a diversified range of renewable feedstocks.

METabolic Explorer will use the proceeds of the offering to industrialise the production processes of three key products. It will also strengthen and extend its IP position by discovering and validating new bacterial strains that can produce other bulk chemicals economically and further expand its portfolio – potentially by co-investment with non-exclusive partners to manufacture the key bulk chemicals in its product portfolio.

CEO Gonzalez said, “We intend to use the funds from our IPO to achieve our ultimate goal of becoming a producer of bulk chemicals using proprietary bacteria via industrial partnerships. The chemicals that we are currently developing target large markets, including fibres, plastics and second generation biofuels; each of which is valued at more than $1 billion annually.”

“The advantages of our biological approach and the size of the markets we are targeting, clearly provides us with the potential to create significant additional value for all of METabolic EXplorer’s shareholders.”