BUENOS AIRES, Jan 10 (Reuters) - Argentine biotechnology firm Bioceres will use the $100 million it seeks by way of an initial public offering to power its current business, pay debt and make a minor acquisition, company CEO Federico Trucco said in a telephone interview on Wednesday.
Two days earlier the company applied to the U.S. Securities and Exchange Commission (SEC) to operate on Wall Street.
Bioceres is a developer of agricultural genetics in Argentina, the world’s top exporter of soymeal livestock feed.
“The capitalization is fundamentally for a growth plan having to do with the commercialization of products that we have ready today,” Trucco said. “There is going to be a minor acquisition and repayment of debt.”
Rosario-based Bioceres develops genes for soy, corn and wheat that withstand drought and cold temperatures. It makes insecticides, fungicides, bio-fertilizers and chemical-based fertilizers.
On Monday it filed a registration statement with the SEC for a proposed initial public offering of American depositary shares (ADSs) representing its ordinary shares. The number of ADSs to be offered and the price range for the proposed offering have not yet been determined.
Bioceres also has filed a petition to offer its ordinary shares in Argentina before the local market regulator.
Foreign investors have been seeking more opportunities to buy Argentine equities since market-friendly President Mauricio Macri took office in December 2015. (Reporting by Maximilian Heath; Editing by Bill Trott)