Biofuel and renewable chemicals maker Gevo is officially a public company, as shares priced at $15 began trading on the Nasdaq this morning.
The Englewood, Colo.-based company said it expected to raise $95.7 million after offering expenses. The stock climbed $2, or 13.3 percent, to $17 in afternoon trading, AP reports.
The company primarily uses existing facilities, retrofitting old corn ethanol plants so that they’re capable of converting cellolosic feedstocks like agriculture wastes into isobutanol, a fuel additive necessary for the production of plastic and other products, Reuters reports.
Gevo is retrofitting its first commercial plant, a facility in Luverne, Minn., which is expected to yield about 18 million gallons of isobutanol annually.
Gevo said it plans to sell bio-based substitutes for products traditionally made from petroleum, including solvents, refiners, fuel, plastics, fibers, and rubber.
As of the end of 2010, Gevo was backed by Khosla Ventures, Virgin Green Fund, Ventures International, Total Energy Ventures International, Burrill, and Malaysian Capital.
The company said it will use the IPO proceeds to acquire additional ethanol facilities to be retrofitted.