Gevo Inc., the developer of biofuels backed by billionaires Vinod Khosla and Richard Branson, raised $107 million in a U.S. initial public offering, pricing its shares at the high end of the forecast range.
The Englewood, Colorado-based company sold 7.15 million shares at $15 each after offering them at $13 to $15 apiece, according to a filing with the Securities and Exchange Commission and data compiled by Bloomberg. Proceeds will be used to buy and equip ethanol production facilities, the filing said.
Gevo is one of 10 companies trying to raise $3.3 billion after two deals were postponed this week and only six of 12 scheduled offerings priced the week ended Feb. 4, according to data compiled by Bloomberg. Kinder Morgan Inc., the Houston- based pipeline company taken private in 2007, is the biggest IPO on the current calendar and will try to raise $2.3 billion Thursday after the Standard & Poor’s 500 Index this week closed at its highest level since June 2008, the data show.
Gevo, 38 percent-owned by Khosla Ventures, the Menlo Park, California-based firm founded by billionaire Vinod Khosla, has had net losses totaling about $77 million since 2005, according to its SEC filing. Virgin Green Fund, backed by British billionaire Richard Branson, owns 15 percent of Gevo, the filing shows. Gevo is selling all of the shares in the offering.
UBS AG of Zurich, Minneapolis-based Piper Jaffray Cos. and Citigroup Inc. in New York led Gevo’s offering. The shares will start trading tomorrow on the Nasdaq Stock Market under the ticker GEVO.