Renewable Energy Group, Inc. [NASDAQ: REGI] disclosed the pricing of an approved public offering of common shares of 5,000,000. The firm has set the price of $67.00 per share of the public offering. Renewable Energy has increased the public offering from 4,500,000 shares to 5,000,000 shares.
REGI is projecting the total profit from the offering of $335 million before subtracting the markdowns and cuts and offering expenses to be paid by REG. The offering is planned to execute on or about March 19, 2021, dependent on the certain usual closing conditions.
Furthermore, REG has also provided the 30-day option to underwriters for the acquisition of up to an extra share of 750,000 shares of its ordinary share at the public offering price, deducting the financing markdowns and cuts. Shares of Renewable Energy plunged 4.96% as it lost -3.92 during the trading session of Tuesday. The firm has the last closing price of $75.10.
Renewable Energy is planning to utilize the net profit from the offering for working capital and for other business purposes of the firm. The general business purpose includes the settlement of the current obligation and the financing of capital expenses, involving capital expenses linked to the growth of the Geismar, Louisiana biorefinery. Furthermore, the firm is also intending to utilize the net profit from this offering to back the necessary deals.