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Summary
- Biotechnology company Zymergen Inc is said to have generated US$ 500 million in proceeds in its upsized initial public offering (IPO) on Wednesday.
- It reportedly sold 16.13 million shares at US$ 31 apiece at its upsized IPO.
- Zymergen, which describes itself as a ‘biofacturing’ company, creates biomolecules from microorganisms to design, develop and commercialize breakthrough digital age products.
Biotechnology company Zymergen Inc is said to have generated US$ 500 million in proceeds in its upsized initial public offering (IPO) on Wednesday, April 21.
Zymergen IPO Price & Size
An IPO is termed as ‘upsized’ when a company expands the size of its offering due to high demand.
In Zymergen’s case, it reportedly sold 16.13 million shares at US$ 31 apiece at its upsized IPO, which was up from its initial plan to sell 13.6 million shares at a price range of US$ 28 to US$ 31 apiece.
Going by the outstanding shares Zymergen listed in its US Securities and Exchange Commission (SEC) filings, the company has a market value of about US$ 3 billion. If employee stock options are included, the valuation reportedly increases to over US$ 3.2 billion.
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Zymergen, which describes itself as a ‘biofacturing’ company, creates biomolecules from microorganisms to design, develop and commercialize breakthrough digital age products. Last year, it launched an optical film that can be used for display touch sensors used in electronic devices.
The company is reportedly working on at least 10 different products, including a film for a flexible electronic screen that might act as an insect repellent in future.
What Is Zymergen's Potential?
Zymergen focuses on sustainable manufacturing and makes biomolecules via fermentation. It claims not to use petrochemical processes as they are less safe in comparison.
Over the years, many countries have become more conscious about the environment. For example, the US and Canada are working on different initiatives to achieve net-zero emissions by 2050. Such moves are likely to help boost the future prospects of companies like Zymergen.
As the California-based company is also designing and developing innovative products at comparatively lower costs, Zymergen may also be able to see gross profits soon.
A Look At Zymergen’s Financials
Zymergen’s annual revenue of US$ 13.3 million in 2020 was down from that of US$ 15.4 million in 2019. Its net loss, meanwhile, increased to US$ 262.2 million in 2020, up from US$ 236.8 million the year before.
In terms of funding, however, Zymergen has managed to maintain a successful track record of attracting private investments. The company is said to have raised US$ 874.1 million over five funding rounds since 2014, with SoftBank, known for investing in high-potential tech firms, as its main investor, as per Crunchbase.
How To Buy Zymergen Stock?
One can choose to invest in Zymergen at its IPO price via brokerage companies that provide services in providing pre-IPO stocks.
Alternatively, you can buy Zymergen stock once it makes its public debut on the Nasdaq platform under the ticker of ‘ZY’ on Thursday, April 22.
