After receiving regulatory approval from the Argentinian government for its drought-resistant soybean, Rosario, Argentina-based bio-agtech company, Bioceres SA is set to be the first initial public offering (IPO) on the New York Stock Exchange to come out of Argentina in 15 months.

 

Through Verdeca, its U.S. joint venture with Davis, California-based Arcadia Biosciences Inc., Bioceres received regulatory approval earlier this month for its HB4 stress-tolerant trait in soybeans from Argentina’s Ministry of Agriculture, Livestock and Fisheries after six years of trials. The seed has proven to not only be resistant to drought, but has shown yields that are 14% higher than average, according to the Argentine govnerment. 

 

Bioceres is poised to sell US$80.5 million in shares at the first opportunity, according to two sources familiar with the plan, and proceeds from the IPO will be used for working capital to fund the commercialization of the seed and to develop a network for distribution.

 

The company is targeting a schedule to bring the seeds to market by October 2016 when Argentina’s farmers will be beginning to plant for the 2016/2017 season. Argentina is the third largest producer of soybeans in the world after the U.S. and Brazil, and soybean exports are the country’s largest source of income.