Renewable Energy Group (Nasdaq: REGI) is scheduled to IPO next week. The largest biofuel producer in the U.S.plans to raise $101 million in its IPO by offering 7.2 million shares at a price range of $13 to $15 a share.
The Iowa-based company was founded in 1996 and booked $627 million in sales in the 12 months ending with September 2011. The stock will begin trading on the Nasdaq next Friday, January 20.
Once it prices, Renewable Energy will become the first U.S. company to go public in 2012. Several other energy companies including Pacific Coast Oil Trust and Ute Energy recently filed initial public offerings with the U.S. Securities and Exchange Commission – a reflection of the rise in oil prices. Those companies have yet to set an official IPO date, however.
Renewable Energy produces its fuel from low-cost feedstocks such as animal fat, used cooking oil and corn oil. The company was formed in 2006, and has grown rapidly since by purchasing six plants and two biodiesel businesses. Its revenue nearly quadrupled in the first nine months of 2011 compared to 2010, though it does have a recent history of losing money.
Renewable Energy sold 68 million gallons of biofuel in 2010 – about 22% of U.S. production.
After 2011 ended with a flurry of IPOs, Renewable Energy is currently the only U.S. company scheduled to go public this month.