The largest American biodiesel producer, Renewable Energy Group Inc. is expecting to have $13 and $15 per share for its initial public offering.
The biodiesel producer intends to offer over 6.8 million shares for sale out of its common stock. Investors West Central Cooperative, US Renewables Group LLC, NGP Energy Technology Partners, ED&F Man Holdings Ltd. and Bunge Ltd. (BG) are offering additional 342,860 shares.
The company registered for July 18 IPO and has expressed optimism to receive net proceeds of approximately $86.5 million at an average price of $14 per share. It will spend roughly $12 million to purchase a production site it presently leases from West Central, US Renewables as well as Bunge in Seneca, Illinois.
Renewable Energy Group has got other production sites facilities in Illinois, Texas, Minnesota and Iowa. It has also got three partially completed factories in New Mexico, Kansas as well as in Louisiana. The Ames, Iowa-based organization succeeded in selling 258 million liters or 68 million gallons of biodiesel during 2010 which is roughly 22% of total U.S. production. Its plants can produce up to 212 million gallons of biodiesel each year from soybean oil, used cooking oil, animal fats and other vegetable oils.
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