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Gevo (GEVO) |
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WIKI ANALYSIS
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
Gevo (NYSE:GEVO) is a renewable biofeuls and chemcials company. Gevo plans to produce isobutanol, which can be used as a raw material replacement to petroleum or as a Renewable Energy fuel-blend. The isobutanol is produced by fermenting sugars and separating the water from the isobutanol. The company's process is still in the development stages and has yet to produce at commercial level quantities.[1]
Isobutanol has three main uses. First, the chemical itself has specialty uses as a solvent. It can also be directly used as a gasoline alternative and burned. Next, isobutanol can be converted to be a replacement hydrocarbon to form plastics, fibers, rubber, and other polymers. Just as petroleum is converted to make complex polymers, so can isobutanol. Finally, isobutanol can be processed to form specialty fuels such as jet fuel and diesel fuel. As a whole, there has been increased demand for renewable energy sources as the variability in price and volume of standard fossil fuels has increased.[2]
The company's initial public offering of stock on the NYSE occurred on February 8, 2011. The company offered 7.15M shares each for $15. This was at the high end of the initial range of $13-$15. This brought the final deal to $107M. The lead underwriters of the IPO were UBS AG (UBS), Piper Jaffray Companies (PJC), and Citigroup (C).[3]
While Gevo has generated some revenue from grants, the company is largely pre-commerical revenues. As a result, for the first 9 months of 2010, the company reported a net loss of $33.8M. As of September 2010, the company had $20.3M in long-term secured debt.[4]
References
- ↑ S-1/A 2011 PROSPECTUS SUMMARY "Overview" pg 1-2
- ↑ S-1/A 2011 PROSPECTUS SUMMARY "Our markets" pg 2
- ↑ Renaissance Capital - IPO Home "Biofuels company Gevo prices IPO at $15, high end of its $13-$15 range" 8 Feb 2011
- ↑ S-1/A 2011 PROSPECTUS SUMMARY "Selected historical consolidated financial data" pg 58-60
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