NEW YORK ( TheStreet) -- Biofuels company Solazyme (SZYM) priced its initial public offering at $18 on Thursday night, higher than the $15 to $17 range set by the green energy company, and in a larger-than-expected share offering.
Solazyme offering just under 11 million shares in the IPO, one million shares more than previously anticipated for the offering.
Before the pricing, the IPO expectations for Solazyme had already doubled from the original goals of the company, which estimated a $100 million offering. The Solazyme deal raised roughly $197 million, above the $184 million which had been expected. Up to 1.6 million Solazyme shares may still be offered in an overallotment period.
The question for investors now turns to whether Solazyme shares are a post-IPO buy. TheStreet recently explored the issue of a post-IPO pop for the green energy stock, versus the long-term investment opportunity and risks in a green energy technology far from large-scale commercial adoption.Two biofuels company peers that went public in the past year have surged post-IPO: Gevo (GEVO) and Amyris (AMRS). Solazyme shares were, in fact, up another 3% after its IPO pricing, above $21 per share on Friday. Solazyme has several high-profile research ventures with the corporate elite in the fuel, chemicals and consumer markets, including backing from Chevron (CVX), Dow Chemical (DOW) and Unilever (UL). The energy IPO market played out according to plan this week, with the buzz surrounding the Solazyme deal leading to the better-than-expected pricing. Solazyme was the energy IPO of the week. Meanwhile, a controversial Chinese renewable energy company, Nobao Renewable Energy, scrapped its IPO on Friday, after a week during which several media outlets, including TheStreet questioned the company's technology . U.S. exploration and production company Forest Oil (FST) also this week spun off its Canadian assets, Lone Pine Resources (LPR), but Lone Pine priced below its expected range and traded down in its first day of trading on Thursday. -- Written by Eric Rosenbaum from New York.
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