For the second time this week, a biofuel company has filed for an initial public offering, this time Gevo Inc., which develops and sells isobutanol.
PetroAlgae filed for an initial public offering on Wednesday.
The reason these companies are filing for an IPO are the weak capital markets, which make risky ventures like these not attractive at all to investors and funds.
Money raised by Gevo will be primarily be used to acquire ethanol facilities which they'll adapt to their needs. They'll also use it for working capital and other general business purposes.
Isobutanol can be used as a replacement for fossil fuels in products like rubber, plastics, and hydrocarbon fuels.
According to the company, isobutanol can be used in gas powered engines with no need to modify anything.
The IPO could raise up to $150 million for them.
No comments:
Post a Comment