UPDATE 1-VeraSun sets IPO at 17.25 mln shares, $18-$20 each
Tue May 23, 2006 6:57 AM ET
(Adds financials, use of proceeds, market capitalization)
WASHINGTON, May 23 (Reuters) - VeraSun Energy Corp. on Tuesday set its planned initial public offering at 17.25 million shares at an estimated price of $18 to $20 each.
UPDATE 1-VeraSun sets IPO at 17.25 mln shares, $18-$20 each
VeraSun sets IPO at 17.25 mln shares, $18-$20 each
The company said in the amended filing with the U.S. Securities and Exchange Commission that it was the second-largest ethanol producer in the United States based on production capacity.
VeraSun said it expected to receive $191.4 million in net proceeds from its sale of shares in the IPO. It will use the funds to help pay for construction costs of two facilities, which are expected to cost $280 million to build.
The Brookings, South Dakota-based company will sell 11 million shares, and stockholders will sell an additional 6.25 million.
Morgan Stanley, Lehman Brothers and A.G. Edwards will underwrite the offering.
The underwriters have the option to buy an additional 2.59 million shares to cover over-allotments.
For the three months ended March 31, VeraSun earned $13.6 million, up from $1.7 million a year earlier, while revenue increased to $109.9 million from $44.7 million.
Assuming an offering price of $19 per share, the midpoint of the expected range, the company will have an initial market capitalization of $1.42 billion.
VeraSun expects to list its shares on the New York Stock Exchange under the symbol "VSE." (VSE.N: Quote, Profile, Research)
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