Soybean Developer, Bioceres, to be First Argentine IPO in 15 Months

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 not only proven to be resistant to drought, but has shown to have yields that are 14% above average, according to the Argentine government.

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 planning to bring the seeds to market by October 2016 when Argentina’s farmers will be beginning to plant for the 2016/17 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.

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