Codexis withdraws IPO

Redwood City, Calif.-based Codexis, which develops biocatalysts for the pharmaceutical and biofuel industries, has dropped plans for an initial public offering, citing current public market conditions.

The company originally filed with the U.S. Securities and Exchange Commission in April to raise up to $100 million (see Codexis files for $100M IPO).

The move adds to the list of biofuel-related companies pulling the plug on their IPOs this year. In March, Ralston, Iowa-based Renewable Energy Group withdrew its plans for a $150 million IPO, becoming the second biodiesel producer of the year to pull out of a share sale (see Renewable Energy Group cancels IPO).

In January, Seattle's Imperium Renewables canceled plans for a $345 million IPO (see Imperium Renewables puts IPO on hold). Imperium dropped its IPO plans less than two weeks after the biodiesel producer dumped its chairman and CEO (see Martin Tobias out at Imperium).

Codexis planned to list on the Nasdaq under the symbol CDXS, with Credit Suisse and Goldman Sachs named as the lead underwriters on the share sale.

Codexis was formed by Redwood City biotechnology firm Maxygen (Nasdaq: MAXY) in 2002. Maxygen holds 25 percent of Codexis. Netherlands oil giant Royal Dutch Shell (NYSE: RDS.A) also holds a stake in Codexis, making an additional investment in the startup last November (see Shell, Codexis in biofuels agreement).

Shell, which holds 13 percent of Codexis, said at the time that it would work with Codexis to develop enzymes that can be used to manufacture biofuels.

In its original filing, Codexis said it had planned to use the cash raised from the IPO for working capital, general corporate purposes, and potential acquisitions.