(Photo: Federico Trucco, chairman, and CEO of Bioceres Crop Solution Corp.)
Buenos Aires, March 19th. The Argentine biotechnology company, Bioceres, launched its ticker $BIOX in the NYSE with an initial value rounds US$4.80 but in a low operation volume context.
In the press statement released today, the developers of the HB4 technology that provides crops tolerance to drought and salinity, say that former Union Acquisition Corp ticker was renamed to Bioceres Crop Solution Corp. through a “reverse merger” type operation and that the remaining shares stock was used to increased the participation in Rizobacter Argentina SA from 50.01 to 80.00%.
The company showed the 2Q financial results (2018/31/12), with a 33% increase in sales to US$62.5 million, a 52% increase in the gross margin to US$29.3 million and 121% increase in EBITDA to US$20.3.
Meanwhile, a paper from Ariel Sbdar, head of Equity Strategy in the Research Division of the Industrial Bank (Bind) in Argentina analyzed that considering a share price of US$4.9, the market capital rounds US$177 million, while Enterprise Value (EV) reached US$310 million.
Considering the financial results of the first half FY 2018/19, the ratio EV/EBITDA reaches 8.73.
The paper compares this ratio with others from similar companies like Novozyimes (17.8) or LBS Industries (16.7), concluding that $BIOX share exhibit an “attractive” value in its debut.
Bioceres Crop Solutions Corp. is headed by Federico Trucco. Former Highfields Capital advisor, Ari Freisinger and Natalia Zang will participate as independent directors. Enrique López Lecube was named CFO.