Market Forces Force REG to Withdraw IPO
The high price of soybean oil is making it awfully tough on some biodiesel makers. In an unfortunate sign of the times for the biodiesel industry, Iowa-based Renewable Energy Group has had to withdraw its attempt at an initial public offering (IPO).
CNNMoney reports that “unfavorable market conditions” has forced the company to reconsider what would have been a $150 million IPO:
The offering, filed in July 2007, listed Credit Suisse, Goldman Sachs (NYSE:GS) , Banc of America Securities and Thomas Weisel Partners as managers in the offering. The Ralston, Iowa-based alternative energy company had planned to use the proceeds from the offering to partially finance the construction of three new biodiesel production facilities, pay accrued dividends and general corporate purposes.