* Boruta-Zachem looks to London's AIM stock market
* To make compounds for household cleaners from rapeseed
* Also looking to add business in nano-dressings
By Jakub Iglewski
WARSAW, August 7 Polish biochemical company
Boruta-Zachem aims to list in London as soon as
September after its shares have risen by more than four times in
the month since its debut on the Warsaw bourse, valuing it
around $90 million.
The company, which currently makes dyes and pigments, plans
to use some of proceeds from a London share offering to build a
new product line in bio-surfactants, a compound used in
household cleaning products and cosmetics, to start next year.
The market for these compounds, dominated by big players
such as AKZO Nobel and Dow Chemical, is set to
grow from around $20 billion to $36 billion over the next few
years, Marcin Pawlikowski, the company's deputy chief executive
said in an interview.
Boruta-Zachem, furthermore, aims to make a bio version of
surfactants from rapeseed, a more environmentally friendly
process than making synthetic surfactants from petroleum.
"I think this market has a huge potential, and I expect that
biosurfactants will be gradually crowding synthetic surfactants
out of it," Pawlikowski said.
The Polish company also aims for low-cost production. Its
facilities are based in Bydgoszcz, a region known for rapeseed
cultivation and close to Poland's largest vegetable oil
production plant - ZT Kruszwica.
"There are other companies that produce biosurfactants,
which are much more expensive than synthetic surfactants,"
Pawlikowski said. "Our method ... enables us to produce
biosurfactants at the same price and with similar quality."
Boruta-Zachem is now considering either a private share sale
or a public offering on the London Stock Exchange's AIM
Pawlikowski said it had picked an adviser but declined to
specify the size of the offering or provide other details.
The Polish company debuted on Warsaw's NewConnect small-cap
market only last month.
"Many investors in Poland were interested in our shares, but
they could not offer a price that would satisfy us. Thus we want
to look for capital abroad," Pawlikowski said.
Boruta-Zachem plans to use the proceeds also to finance
takeovers of rival biochemical companies as well as research and
Besides biosurfactants, Boruta-Zachem plans to start
producing nano-dressings in 2016 for use in treatment of
hard-to-heal wounds caused by diabetes, an alternative to
current wound dressings with antibiotics.
"There will be no antibiotics, so the wound will not
immunize itself against the healing agent," Pawlikowski said.
"Our dressing will not breach the wound while being taken off,
so it will be more comfortable for users."
It is also hoping to tap into European Union financing for
small and medium-sized firms that invest in innovation.
(1 US dollar = 3.1375 Polish zloty)
(editing by Jane Baird)