Renewable Energy Group Inc., the largest U.S. biodiesel producer, expects to price its initial public offering between $13 and $15 a share.
The company plans to sell more than 6.8 million shares of its common stock, it said today in a filing. Shareholders Bunge Ltd. (BG), ED&F Man Holdings Ltd., NGP Energy Technology Partners, US Renewables Group LLC and West Central Cooperative are offering an additional 342,860 shares.
Renewable Energy Group registered for the IPO July 18 and said today it expects net proceeds of about $86.5 million, at the midpoint price of $14 a share. It will use about $12 million to buy a production facility it currently leases from Bunge, US Renewables and West Central in Seneca, Illinois.
Renewable Energy Group owns other manufacturing facilities in Iowa, Minnesota, Texas and Illinois, and three partially completed plants in Louisiana, Kansas and New Mexico. The Ames, Iowa-based company sold 68 million gallons (258 million liters) of biodiesel in 2010, or about 22 percent of total U.S. production, according to the filing. Its facilities may produce as much as 212 million gallons of biodiesel a year from animal fats, used cooking oil, soybean oil and other vegetable oils.
Net proceeds will be $100.5 million, assuming a price of $14 a share, if underwriters UBS Securities LLC, Piper Jaffray & Co., Stifel, Nicolaus & Company Inc. and Canaccord Genuity Inc. exercise their over-allotment option to purchase as much as 1.08 million shares within 30 days.
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