Carbios shares suffered one of the biggest falls on the Paris market on Thursday morning, in response to a 122 million euro capital increase to support its industrial projects.

The biotech company, which develops processes to reinvent the life cycle of plastics and textiles, plans to issue 4.8 million new shares at a subscription price of 25.32 euros each.

This price represents a 37% discount to the closing share price of 40.10 euros on June 20, the day before the prospectus was approved.

At around 9:30 a.m., Carbios shares were down 13%.

The capital increase, which could rise to 141 million euros if the extension clause is exercised in full, should enable the company to roll out its industrial and commercial project on a "large scale".

Carbios intends to commission the world's first PET plastics biorecycling plant in France in 2025, in partnership with Indorama Ventures.

Indorama Ventures is expected to contribute 110 million euros to the estimated investment of 230 million euros.

Carbios' financing of 120 million euros includes 42.5 million euros from the French government and the Grand-Est region.

The balance, around 77.5 million euros, will come from available cash and part of the proceeds of the issue.

Under the terms of the transaction, each shareholder of the company will receive one preferential subscription right (DPS) per share, with seven DPS entitling holders to subscribe to three new shares.

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