US-based biodiesel company Renewable Energy Group set the range for its shares for its initial public offering (IPO) at between $13 and $15 per share on Tuesday, with net proceeds estimated at $100.5m.
Renewable originally filed for an IPO worth up to $100m in July. The largest shareholder in Renewable is West Central, the farmer-owned cooperative from which Renewable spun off, and which holds 22.2% of the company’s stock.
Additional shareholders include agribusiness corporation Bunge (which holds 5.7% of its stock), commodities provider ED&F Man Holdings (6.4%), private equity fund NGP Energy Technology Partners (13.5%) and investment firm US Renewables Group (USRG, which holds 15.5%).
Of the proceeds, about $12m is earmarked for the acquisition of its biodiesel plant in Seneca, which it currently leases from Bunge, USRG, and West Central, with the rest to go towards working capital. Should the underwriters option be taken up, Renewable’s series A shareholders, which include West Central, will be in line for a $15m payout.
Renewable is currently the largest biodiesel producer in the US, and operates an integrated platform which includes conversion and supply of biodiesel, feedstock and glycerin. According to the filing, Renewable made net losses of $21.6m in 2010, though its revenues rose 60% year on year to $216.5m.