Biome Australia IPO: Why should NZ investors consider the Company?

Highlights

• Biome Australia is a live biotherapeutics and complementary medicines developing Company.
• The Company is seeking A$8 million at A$0.2 per share through IPO.
• Biome is expected to begin trading on ASX on 30 November.

Biome Australia develops and markets a range of new live biotherapeutics and other evidence-based complementary medicines in Australia, New Zealand and the UK. The Company has an extensive product portfolio, covering probiotics, food-based vitamins and weight-management products while targeting key consumer health concerns.

Biome Australia IPO: Why should NZ investors consider the Company?

The Company Is undertaking an IPO to raise capital to accelerate growth initiatives. The Company plans to get listed on ASX under the code "BIO".

How much is the Company targeting to raise?

Biome is offering to issue 40 million fully paid ordinary new shares for A$0.2 per share to raise A$8 million.

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What are the Offer dates?

The Offer began on 3 November and will close on 17 November. The Company will issue new shares under the Offer on 24 November, with shares likely to start trading on ASX on 30 November 2021.

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How will it use the proceeds from the Offer?

The Company plans to use the funds raised from the Offer to accelerate Biome's market expansion, pay for inventory and staff costs, administration costs, working capital, and the Offer's costs.

Why can NZ investors consider it?

NZ investors can consider this Company due to the expanding complementary medicines industry.

Nearly 33% of Australians use complementary medicines to deal with the signs of a persistent disease. The complementary medicines industry is projected to cost $5.69 billion in FY21 in Australia, with 7 out of 10 Australians repeatedly using complementary medicine.

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Biome has ongoing R&D and aims at launching new products to market in immediate, short and long term periods.

What are the associated risks?

NZ investors must also consider the risks that arise with the investment. There are early-stage risks associated with Biome as it recently began its commercial operations and has run at a loss since its inception in July 2018.

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There is also speculation that further growth may substantially strain current management, operational and financial resources, and the infrastructure supporting the Company.

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Loss of adoption of Biome's products by independent practitioners, non-extension of the present agreements with partners, loss of management personnel, logistics, etc., are other risk factors that investors should consider.

Bottom Line

Biome Australia aims to become a prominent international and clinically backed complementary medicine company.