Gevo raises $123.3 million in IPO after underwriters oversubscribe

March 16, 2011 |

In New York, Piper Jaffray, UBS and Citi, in a wrapup report on the Gevo IPO, said that “after trading up nearly 10 percent on the first day of trading, the underwriters exercised their overallotment option bringing the total capital raised to $123.3 million.” In total, the company sold 8.223 million shares at a $15 price per share, at the top end of the $13-$15 filing range.

The top 20 investors accounted for 65 percent of the deal, after meetings with 127 investors, including 50 one-to-one meetings, in a 13-day, 17-city roadshow in the US and Europe. Gevo, which will have its official “quiet period” end on March 20, is producing isobutanol, a four carbon alcohol which can be sold as a value-added fuel blendstock or for direct use as a specialty chemical.

To produce isobutanol, the company retrofits low margin ethanol assets to generate approximately 2x the EBITDA profit per gallon. According to the company, isobutanol and its derivatives have potential applications in approximately 40 percent of the $304 billion petrochemicals market, and substantially all of the trillion dollar hydrocarbon fuels market.

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Category: Fuels

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