Cashing in on Ethanol: Two more Ethanol firms to IPO
According to this story on Marketwatch.com, Ethanol producers VeraSun Energy and Aventine Renewable Energy Inc. both filed to raise a total of $200 million as alternative energy makes its way into the market for initial public offerings.
The IPO market for Ethanol producers is very hot right now as seen by the recent listing of Green Plains Renewable Energy Inc. (NASDAQ: GPRE) which tripled on its first day on the Nasdaq. Another Ethanol stock, Pacific Ethanol Inc, (Nasdaq: PEIX) has doubled in the last three months or so. Until, a few months ago PEIX was the only pure play Ethanol stock but with more and more companies filing to go public it seems like investors will have a variety of Ethanol companies to pick from.
VeraSun
VeraSun operates two plants in South Dakota and Iowa and is building a third in Iowa and will use its IPO proceeds to build two more plants in Iowa and Minnesota. VeraSun reported net income of $253,000 and revenue of $236 million in 2005, compared to net income of $14.8 million and revenue of $194 million in the prior year. VeraSun plans to trade on the New York Stock Exchange under the symbol VSE.
Aventine
Aventine Renewable Energy Holdings Inc., which operates ethanol plants in Illinois and Nebraska, plans to raise up to $50 million in its IPO. Aventine reported net income of $32 million on revenue of $935 million in 2005, up from net income of $29 million and revenue of $859 million in 2004. On Dec. 30, the company raised $256 million in a private offering of 21 million shares at $13 a share.
Both these companies are profitable and plan to list on the NYSE.
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