VeraSun IPO tops expectations

Shares of ethanol producer sell for $23 per share, pricing the public offering at $419.75 million.

NEW YORK (Reuters) – Ethanol producer VeraSun Energy Corp. priced an initial public offering worth $419.75 million Tuesday, according to an underwriter, above the previously forecast price range.

The 18.25 million share offering sold for $23 per share, compared with a forecast range of $21 to $22. The company had previously planned to sell 17.25 million shares in a price range of $18 to $20 per share.

VeraSun is offering 11 million shares, and stockholders are offering an additional 7.25 million.

The $23 per share IPO price values the company at about $1.7 billion.

VeraSun, based in Brookings, S.D., produces 230 million gallons of corn-based ethanol a year and is the second-largest U.S. producer behind Archer Daniels Midland Co.

Reuters