Rubicon's ArborGen plans $75m US IPO

Photo / Hawkes Bay Today

ArborGen, the tree seedling company that's 33 per cent owned by New Zealand's Rubicon, plans to raise US$75 million in a US initial public offering.

The Summerville, South Carolina-based company will use the proceeds to buy a new headquarters, manufacturing and research laboratories and to repay debt, it said in a statement on Friday.

ArborGen's other shareholders are International Paper and MeadWestvaco.

The number of shares to be offered and the price range for the offering have not yet been determined, it said. Goldman, Sachs and Citi will manage the sale.

Rubicon shares last traded at 79 cents and have fallen 12 per cent this year.