On its first day of trading, algae oil and fuel company Solazyme, saw its shares trade up around 15 percent from its IPO price of $18 per share. At one point Solazyme’s shares hit $22 per share, but leveled back down to close at $20.71.
Overall it’s a good performance for a stock for a company manufacturing efficient algae strains to turn into biochemicals, cosmetics and ultimately fuel. Solazyme had estimated a price range of $15 to $17 per share just last week, but started trading at $20 this morning, an 11 percent premium over its $18 IPO price. Both next-gen biofuel makers Amyris and Gevo also fared well on the public markets when they debuted last year.
Solazyme’s IPO is an important step for the future of algae-based products and perhaps fuel, and shows investors that there is money to be made in these renewable products. However, Solazyme doesn’t plan on commercializing its algae fuel product for another couple of years down the road, and instead the company has been focusing on selling non-fuel products like cosmetics and biochemicals.
We’ll see if the share price can stay up long enough for the original investors to get some money after the 180-lock-up period.