Colorado-based biofuel company Gevo, Inc. (Nasdaq: GEVO) saw its shares rise as much as 16% in its debut Wednesday on the Nasdaq.
The stock ended the day at $16.44, after reaching as high as $17.53 earlier in the day. Gevo priced the shares at $15 (the top of its range), raising about $107 million on the sale of 7.2 million shares.
The share price fluctuated between $16.15 and $16.79 in Thursday morning trading.
Gevo’s technology platform converts renewable raw materials into isobutanol and renewable hydrocarbons that can be directly integrated on a "drop in" basis into existing fuel and chemical products to deliver environmental and economic benefits.
The company says it is currently able to convert almost 94% of the plant sugars theoretically available in a feedstock–which is a remarkably high yield.
Khosla Ventures holds the largest stake in the company at more than 40%. Other venture capital investors include Burrill & Company, Malaysian Life Sciences Capital Fund, Lanxess and Virgin Green Fund.
In July 2010, Gevo signed a non-binding agreement to supply renewable jet fuel to United Airline at its major hub airport in Chicago. Gevo anticipates that the initial quantity will be 10,000 barrels per day, beginning in 4Q12–with a goal of ramping up to 30,000 barrels per day by 2015 and 60,000 barrels per day by 2020.
Gevo’s solid debut follows the very strong IPO of biofuel company Amyris, which is currently selling at around $31 per share up from a debut price of $16 dollars in September.
In Related News…
The outlook for renewable energy companies is looking brighter, and investors are on their way back, according to a Reuters story–at the link below.
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