September 22, 2018

Renewable Energy Group IPO

“2011 has been a big year for biodiesel manufacturers in the stock market, and Renewable Energy Group’s recent filing for an IPO is another huge addition to the market. With plans to raise $100 million in funds through stock trades, Renewable Energy Group is known as the largest biodiesel producer in America. Gevo, Solazyme and Kior are three different biodiesel companies that have registered for an IPO this year, but investors have been especially drawn to the IPO filing done by Renewable Energy Group due to the fact that they manufacture a large majority of their own biodiesel.

Currently, the Renewable Energy corporation runs six different biodiesel plants throughout America, adding up to a maximum output of 212 million gallons per year. Five of the six plants are owned by Renewable Energy (dubbed REGI as it’s stock ticker in the recent IPO filings), and the primary purpose of the IPO filing is to raise money to wholly purchase their sixth biodiesel plant. Additional plans for the company include the production of additional environment-safe chemicals, feedstocks and biofuels. Algae oil was said to likely be one of the companies first extensions of production upon acquisition of the $100 million.

The filings that the company put into action revealed a reported 68 million gallons sold in 2010, and revenues reaching beyond $200 million. With an $85.45 million reported revenue in 2008, Renewable Energy makes for a stock option that investors will not be able to leave alone. The first three months of sales in 2011 were triple that of the sales in the same period of last year, and the Iowa-based Renewable Energy Group has hopes to only increase the $3.74 million in profits that were reported in the first quarter of 2011.

Although the revenues are impressive, REGI has reported net losses in 2009, 2008 and 2010, but considering that the company has been in existence since 1996 many believe that these losses might simply be signs of a rapidly expanding company economy. Another matter to consider when it comes to Renewable Energy is the fact that, unlike many other biodiesel companies, Renewable Energy Group consists of quite a number of different companies in cooperation.”


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