Skip to main content

Zymergen Jumps in Debut After Upsized Initial Public Offering

Zymergen raised the size of its IPO to 13.6 million shares and expects to raise about $500 million. The stock jumped in initial trading.
  • Author:
  • Publish date:

Zymergen  (ZY) - Get Zymergen Inc. Report shares opened trading at $38.96 Thursday afternoon, debuting 25% above its estimated price on the Nasdaq. 

The biofacturing company upsized its public offering to 16.13 million shares from plans to issue 13.6 million. The shares were priced at $31. The company expects to raise about $500 million. 

The IPO pricing valued the Emeryville, Calif., company at about $2.96 billion. The underwriters, led by JPMorgan and Goldman Sachs, have an option to buy another 2 million shares.

The stock at last check was up 21% at $37.59. They've traded on Thursday up as much as 33% at $41.15.

The company's first product, Hyaline, is an optical film that can be used in display touch sensors for personal devices and other applications. The film will be used in new categories of smart devices, including rollable tablets and naturally derived UV protection. 

Read More: Zymergen, Biofacturing Firm, Kicks Off Roadshow for IPO

Scroll to Continue

TheStreet Recommends

The company says it will use proceeds from the offering for working capital and continued investment in commercializing its products, launching new products in its pipeline, and further developing its biofacturing platform and technology, according to its S-1 filing

The company's losses widened to $262.2 million in 2020 from $236.8 million in 2019. Total revenue dropped about 14% to $13.3 million in 2020. 

The company specializes in what it calls biofacturing. It designs, develops and commercializes products in which "microorganisms create the biomolecules that are the key ingredients in those products."

It explains: "A traditional chemical factory’s tons of steel and concrete are functionally replaced by a tiny, flexible, easily reproduced, but incredibly valuable engineered cell.

"Our goal is to make our biomolecules by fermentation, where all biofacturing reactions occur inside the engineered cell in standard fermentation vats, rather than the expensive, purpose-built chemical plants used in synthetic chemistry."

Read More: UiPath IPO Estimated $43-$50 a share, Could Raise $1.06 billion