Carbios raises 141 million euros for biorecycling plant

French biotechnology company Carbios announced the successful completion of a capital increase, raising approximately 141 million euros. The company stated this is the largest capital increase on the Euronext Growth market since 2015. The funds are earmarked for the construction of the world's first industrial-scale PET biorecycling plant in France.

The capital increase saw total demand reach around 173 million euros, representing a subscription rate of 141.2%. Carbios will issue 5,558,695 new shares at a subscription price of 25.32 euros per share. Based on closing prices from July 7, 2023, the company's market capitalization was approximately 569 million euros.

Approximately 85% of the net proceeds will be used to finance the construction of the new plant, which is projected to have a processing capacity of 50,000 tons per year. The estimated investment for this facility is around 230 million euros. The remaining proceeds will fund Carbios' research and development activities, including the acceleration of its research for other polymers and applications.

Carbios' technology offers a biological solution for recycling PET plastic, aiming to reduce plastic pollution and reliance on fossil fuels. The company intends to establish itself as a leader in the growing market for recycled PET.