|VeraSun’s three ethanol plants represent 5% of US production capacity.|
Ethanol producer VeraSun Energy Corporation and its shareholders raised $419.75 million in the company’s IPO today. VeraSun is the second-largest producer of ethanol in the US, behind Archer Daniels Midland (ADM) and the largest pure-play ethanol company.
The company sold 11 million shares and shareholders sold 7.5 million shares at a price of $23 per share—exceeding the $21 to $22 pricing range the company forecast in its regulatory filing.
VeraSun’s IPO is the first this year by a US ethanol producer, and the largest yet for an alternative fuels company.
VeraSun operates three plants with a combined production capacity of 230 million gallons of ethanol per year—about 5% of the US total capacity—and is building another 110-million-gallon plant due to come online in 2007.
VeraSun is partnering with Ford and GM in a series of initiatives designed to increase the E85 refueling infrastructure in select areas of the US.