Ethanol producers VeraSun Energy Corporation and Aventine Renewable Energy plan to go public in offerings that could raise $200 million or more. The companies have filed their S-1 registration statements with the SEC.
VeraSun, which recently has closed deals with Ford and GM to expand E85 fueling stations in several states, filed the larger of the two, expecting to raise $150 million. Aventine expects to raise $50 million.
VeraSun is the second-largest ethanol producer in the US, and has two operational production facilities in Aurora, South Dakota and Fort Dodge, Iowa and is constructing a third facility in Charles City, Iowa. The company intends to use the net proceeds from the offering, together with cash generated from operations, to finance construction of two additional ethanol production facilities in the upper Midwest.
VeraSun reported net income of $253,000 on revenue of $236 million in 2005, compared to net income of $14.8 million on revenue of $194 million in the prior year.
Aventine produced and distributed 529.8 million gallons of ethanol in 2005 (13.4% of the total), and has a capacity of 150 million gallons per year from its own two facilities.
The company reported total 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. Those shares, combined with the new shares issued, could give the company a market capitalization of around $450 million.