27 Apr 2011

ArborGen IPO could dilute Rubicon's stake

1:15 pm on 27 April 2011

Rubicon's stake in the biotechnology firm ArborGen could be diluted if ArborGen succeeds in raising up to $US92 million through an initial public offering in the United States.

ArborGen has operations in New Zealand, and is a third-owned by the New Zealand listed forestry investor Rubicon, which also has a 58% stake in Tenon. It was once part of Fletcher Challenge.

ArborGen has filed a registration statement with the US Securities and Exchange Commission detailing its plans to offer 5.12 million shares at between $US16 and $US18 each, with the aim of raising between $US82 million and $US92 million.

That would dilute Rubicon's ownership in ArborGen to 27.24%.

Goldman Sachs and Citi will manage the proposed offering.

Rubicon's share price is unchanged at $1.20.