Biochemical firm plans London listing after shares jump in Warsaw

Hub.Tech SA

07/08/2014 15:17

* Boruta-Zachem looks to London's AIM stock market 
    * To make compounds for household cleaners from rapeseed 
    * Also looking to add business in nano-dressings 
 
    By Jakub Iglewski 
    WARSAW, August 7 (Reuters) - Polish biochemical company 
Boruta-Zachem  BRUP.WA  aims to list in London as soon as 
September after its shares have risen by more than four times in 
the month since its debut on the Warsaw bourse, valuing it 
around $90 million.  
    The company, which currently makes dyes and pigments, plans 
to use some of proceeds from a London share offering to build a 
new product line in bio-surfactants, a compound used in 
household cleaning products and cosmetics, to start next year. 
    The market for these compounds, dominated by big players 
such as AKZO Nobel  AKZO.AS  and Dow Chemical  DOW.N , is set to 
grow from around $20 billion to $36 billion over the next few 
years, Marcin Pawlikowski, the company's deputy chief executive 
said in an interview. 
    Boruta-Zachem, furthermore, aims to make a bio version of 
surfactants from rapeseed, a more environmentally friendly 
process than making synthetic surfactants from petroleum. 
    "I think this market has a huge potential, and I expect that 
biosurfactants will be gradually crowding synthetic surfactants 
out of it," Pawlikowski said. 
    The Polish company also aims for low-cost production. Its 
facilities are based in Bydgoszcz, a region known for rapeseed 
cultivation and close to Poland's largest vegetable oil 
production plant - ZT Kruszwica  KSWP.WA . 
    "There are other companies that produce biosurfactants, 
which are much more expensive than synthetic surfactants," 
Pawlikowski said. "Our method ... enables us to produce 
biosurfactants at the same price and with similar quality." 
     
    NEW FUNDS 
    Boruta-Zachem is now considering either a private share sale 
or a public offering on the London Stock Exchange's  LSE.L  AIM 
market. 
    Pawlikowski said it had picked an adviser but declined to 
specify the size of the offering or provide other details. 
    The Polish company debuted on Warsaw's NewConnect small-cap 
market only last month. 
    "Many investors in Poland were interested in our shares, but 
they could not offer a price that would satisfy us. Thus we want 
to look for capital abroad," Pawlikowski said.  
    Boruta-Zachem plans to use the proceeds also to finance 
takeovers of rival biochemical companies as well as research and 
development projects. 
    Besides biosurfactants, Boruta-Zachem plans to start 
producing nano-dressings in 2016 for use in treatment of 
hard-to-heal wounds caused by diabetes, an alternative to 
current wound dressings with antibiotics.     
    "There will be no antibiotics, so the wound will not 
immunize itself against the healing agent," Pawlikowski said. 
"Our dressing will not breach the wound while being taken off, 
so it will be more comfortable for users." 
    It is also hoping to tap into European Union financing for 
small and medium-sized firms that invest in innovation. 
    (1 US dollar = 3.1375 Polish zloty) 
 
 (editing by Jane Baird) 
 ((jakub.iglewski@thomsonreuters.com)(+48 22 653 9703)(Reuters 
Messaging: Reuters Messaging: 
jakub.iglewski.reuters.com@reuters.net)) 
 
Keywords: BORUTAZACHEM LISTING