ArborGen ends US share sale

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ArborGen, a forestry biotechnology company 33 per cent owned by NZX-listed Rubicon, has pulled an initial public share offer in the United States, citing market conditions as a reason.

ArborGen wanted to sell 5.12 million new shares to the public at between US$16 and US$18 a share to raise between US$82 million ($103 million) and US$92 million.

Rubicon's holding in ArborGen was going to fall to 27.24 per cent from 33.33 per cent if the capital raising proceeded.

Arbogen said yesterday that its owners International Paper, MeadWestvaco and Rubicon, in conjunction with Goldman Sachs and Citigroup Global Markets, who were acting as joint book-running managers for the offer, had decided not to proceed with it.