11 May 2011

Share float shelved

1:08 pm on 11 May 2011

The ArborGen biotech firm, which is a third-owned by listed forestry investor Rubicon, has shelved plans for a share float worth $US92 million.

ArborGen has operations in New Zealand and was once part of Fletcher Challenge.

The company had filed the paperwork for an initial public offering in the United States, but has now decided not to go ahead with the float because of current stock market conditions.

ArborGen says it may reconsider listing when market conditions are more favourable.

In the meantime, ArborGen will meet its short term funding needs through partner funding, existing debt facilities and the injection of new external capital if required.

Rubicon's shares, which were placed on a trading halt on Tuesday, fell 17 cents to 88c after they resumed trading on Wednesday morning.