Israeli AI-based genomic company NRGene has completed its initial public offering (IPO) on the Tel Aviv Stock Exchange (TASE), raising NIS 100 million at a company valuation of NIS 370 million, after money. Leading Israel institutional bodies invested in the IPO. NRGene was founded in 2009 by CEO Dr. Gil Ronen and VP strategic accounts Guy Kol. The company's last financing round was in January 2017 at a company valuation of $60 million, before money.
NRGene chairman Asaf Levi said, "Going public is a significant milestone in the company’s plan for growth. The funds will be used to accelerate our growth, expand the company's market share and create long-term collaborations. NRGene is operating in the rapidly growing plant and animal genomics market, which is expected to reach US$ 6.4 billion by 2025."
NRGene cofounder and CEO Dr. Gil Ronen added, "NRGene’s groundbreaking technology has been already utilized in more than 250 projects globally, with leading agricultural companies such as Bayer and Syngenta. The company currently plans to expand its global activities and become an integral part of the optimization processes in agriculture and the food industry."
Based in Ness Ziona, NRGene develops AI software solutions which analyze genomics big data to enhance plants’ and animals’ natural breeding processes, without genetic engineering. This technology allows its partners and customers to accelerate plants' varieties' development, while achieving increased yield, disease resistance, climate resilience and higher nutrition values. These improvements shorten breeding programs and lead to significant cost reductions. The company's customers also gain a competitive advantage by reducing their time to market and increasing their market share.
NRGene already partners with several leading global companies from 30 countries and various industry verticals, such as in agriculture, food & beverages, cannabis, pulp and paper, rubber etc.
NRGene launched its AI technology in 2015, and plans to increase its revenue by 150%-250% over the next two years.
In 2020 NRGene adopted a new business model of joint IP development with its customers, in return for royalties from the sales of the co-developed products. NRGene has already signed several royalties-based agreements for the development and sale of seeds of maize, rice, chili pepper and tomatoes.
The IPO was led by IBI and Epsilon underwriters and supported by Herzog Fox & Neeman Advs. Eyal Bar-Zvi and Efrat Tzur and PwC Israel's Shahar Houri.
Published by Globes, Israel business news - en.globes.co.il - on January 26, 2021
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