Biodiesel producer Renewable Energy Group, Inc. (REGI) announced in a regulatory filling on Tuesday that it will sell 7.2 million common shares in an initial public offering at an estimated pricing between $13 and $15 per share to raise up to $108 million. The company filed the initial registration statement for the IPO on July 18, and has applied for listing its common stock on the Nasdaq Global Market under the ticker symbol 'REGI'.
The Ames, Iowa-based company revealed in an amended form S-1 filing with the U.S. Securities and Exchange Commission that it will sell 6.86 million shares of common stock, and the selling stockholders will offer 0.34 million shares.
The company noted that it will not receive any proceeds from the shares sold by the selling stockholders. The company has also granted underwriters a 30-day option to buy up to an additional 1.08 million common shares at the IPO price, to cover over-allotments, if any.
Renewable Energy Group said it plans to use the net proceeds from the IPO to acquire its currently leased facility in Seneca, Illinois as well as for other capital expenditures and working capital.
The company noted that it has never declared or paid any cash dividends on its common stock. It expects to retain all of its future earnings to finance the expansion and development of its business and do not currently intend to pay any cash dividends on the common stock in the foreseeable future.
The underwriters for the offering are UBS Investment Bank, Piper Jaffray, Stifel Nicolaus Weisel and Canaccord Genuity.
Following the completion of the offering, the company will have 28.65 million shares of Common Stock and Class A common stock outstanding, immediately valuing the company at about $430 million.
For the year ended December 31, 2010, the company generated total revenues of $216.46 million, and posted a net loss of $50.33 million or $4.28 per share. The company reported revenues of $557.25 million, and a net loss of $27.24 million or $2.02 per share for the nine months ended September 30, 2011.
Renewable Energy Group is the largest producer of biodiesel in the U.S. based on gallons produced. It markets and distributes its biodiesel throughout the country to all segments of the petroleum-based distillate fuel supply chain. In 2010, it sold nearly 68 million gallons of biodiesel, representing about 22 percent of U.S. biodiesel production, and in 2011 it estimates that between 146 and 148 million gallons of biodiesel was sold, representing about 116 percent increase over 2010.
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