Bryan, Garnier & Co acts as Sole Financial Advisor & Joint Global Coordinator to Avantium, a leading renewable and circular plastics company, on a EUR 70m Rights Offering and Institutional Upsize ABB

Avantium is a Dutch company pioneering renewable & circular polymer materials.

Avantium’s lead product is FDCA, the key building block for the sustainable plastic PEF. PEF is a 100% plant-based, recyclable and degradable plastic with superior performance, providing a sustainable alternative to fossil-based plastics.

Avantium is reaching a key inflection point with the construction of the world’s first commercial FDCA Flagship plant nearing completion and enabling the commercialization of FDCA and PEF from 2024. The company has demonstrated robust global demand for PEF, having signed 15 offtakes agreements with leading international brands in the bottling, packaging, specialty films and textile industries.

The capital raise aimed to finance the completion of the construction of the FDCA Flagship plant that will come on-stream during Q2 2024 and to accelerate the sale of technology licenses to third parties.

Acting as Sole Financial Advisor and Joint Global Coordinator, Bryan, Garnier & Co helped deliver a EUR 70m Rights Offering and Institutional Upsize ABB for Avantium on Euronext Amsterdam.

The objectives of the transaction were multifold:

  • Raising with 100% certainty the minimum required capital to finance the development plan
  • Securing new cornerstone investors to further strenghten and diversify the cap table
  • Involving existing institutional and retail shareholders as well as new investors
  • Having the ability to satisfy excess investor demand and raise additional capital to solidify the profile of Avantium amidst acceleration of licensing sales

The transaction structure was tailored to meet all of these objectives, which were successfully achieved:

  • EUR 50.5m base deal fully underwritten, guaranteeing the targeted minimum proceeds to Avantium
  • New strategic cornerstone investor SCG Chemicals and new cornerstone investor Pieter Kooi investing EUR 12m in aggregate as part of the transaction, strenghtening the share register
  • Rights offering structure, enabling participation from all shareholders at this key inflection point, as well as new investors through a public offering in Netherlands and Belgium, and in France via PrimaryBid
  • EUR 19.5m upsize option to accomodate excess investor demand and raise further capital

The Rights Offering price was set at EUR 1.87 per share, representing a 35.1% discount to TERP with an 8 for 5 subscription ratio. The EUR 50.5m base deal was launched with irrevocable subscription commitments representing 44% of the offer:

  • EUR 4.5m from new strategic cornerstone SCG Chemicals in conjunction with a strategic intent letter for joint commercial opportunities, potential co-investment right in a future plant and grant of a non-exclusive technology license
  • EUR 7.5m from new cornerstone investor Mr. Pieter Kooi
  • EUR 10.4m from long-term institutional shareholders APG Asset Management, Wierda and Navitas B.V.

The transaction was an outstanding success with a final take up rate of 90.6% highlighting the strong support from institutional and retail shareholders, that had also materialized during the subscription period with robust trading in the shares and rights. Significant interest from institutional investors led to the exercise of the full EUR 19.5m upsize option. The Institutional Upsize ABB was succesfully placed at a limited discount of 3.2% vs the last close and a premium of 23.0% to the Rights Offering issue price, to reach a total deal size of EUR 70m.

The net proceeds of the transaction will fund the completion, commissioning and start-up of the FDCA Flagship Plant and the acceleration of its commercial deployment, as well as help the company demonstrate its long-term financial viability to its stakeholders, such as its customers and prospective licensees.

Avantium is a pioneering commercial-stage company focused on renewable & circular polymer materials.
Avantium develops and commercialises innovative technologies for the production of materials based on sustainable carbon feedstocks, i.e. carbon from biomass or carbon from the air (CO2). The most advanced technology is the YXY® Technology that catalytically converts plant-based sugars into FDCA (furandicarboxylic acid), the key building block for the sustainable plastic PEF (polyethylene furanoate). Avantium has successfully demonstrated the YXY® Technology at its pilot plant in Geleen, the Netherlands, and is currently constructing of the world’s first commercial plant for FDCA, with large-scale production of PEF expected in 2024. Avantium works in partnership with like-minded companies around the globe to create revolutionary renewable chemistry solutions from invention to commercial scale.

Avantium’s shares are listed on Euronext Amsterdam and Euronext Brussels (symbol: AVTX). Avantium is incorporated in the Euronext Amsterdam SmallCap Index (AScX). Its offices and headquarters are in Amsterdam, the Netherlands.