By Tess Stynes
Evogene Ltd. unveiled some estimated details of its plans to
offer 5 million shares in an official public offering, as the
agricultural genomics company raises funds for research and
development and other purposes.
The Israel-based company said its principal shareholder,
Monsanto Co. (MON), has expressed interest in purchasing as much as
$12 million of the shares at the IPO price, according to a filing
with the U.S. Securities and Exchange Commission. Further estimated
terms of the deal weren't provided.
While there is no guarantee that Monsanto, the world's largest
seed producer, would acquire shares in the IPO, a purchase of $12
million shares would give the company an estimated stake of 9.4%
after Evogene's market debut.
Monsanto has de-emphasized its herbicide business to focus more
exclusively on seeds, where it is in heated competion with rival
DuPont Co. (DD). For its part, DuPont plans to spin off its
performance chemicals business best known for the materials in
nonstick frying pans and house paints, to emphasize higher growth
businesses such as agriculture.
Evogene aims to boost the traits in seeds to enhance crop
performance through biotechnology and advanced breeding methods.
The company's products are focused on essential crops, such as
corn, soybean, wheat, rice and cotton.
For 2012, Evogene swung to a loss of $2.5 million, compared with
year-earlier earnings of $645 million as higher operating costs and
significantly weaker margins offset revenue growth of 15% to $17.1
million.
Evogene said its shares have been authorized for listing on the
New York Stock Exchange under the symbol EVGN. The company's stock
currently is listed on the Tel Aviv Stock Exchange.
Write to Tess Stynes at tess.stynes@wsj.com
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