Changing World Pushing Ahead with Biofuel IPO

Is the recession over? Someone must think so, because Changing World Technologies, a West Hempstead, N.Y.-based biofuel developer, is moving forward with plans for an initial public offering, setting terms at 2.8 million shares for $11 to $15 per share.

In its latest filing with the U.S. Securities and Exchange Commission, Changing World said it has a small-scale facility in Carthage, Mo., that uses a thermal conversion process to make biodiesel, as well as some fertilizer, out of animal and food processing waste. The Carthage plant, the company’s only production facility, has the capacity to convert 78,000 tons of waste into 4-9 million gallons of biodiesel per year, depending on the feedstock mix.

This looks like the first movement in the IPO market for a cleantech company in 2009, and it’s one of just a handful of companies of any kind making an attempt at going public so far this year. A recent report from New Energy Finance painted a grim picture for the public markets for 2009, with debt financing continuing to be a major issue. The group’s chairman and CEO, Michael Liebreich, said in a statement that the stock markets “remain fragile, and this will deter clean energy firms wanting to launch IPOs or secondary issues.”

While it’s unclear what’s compelling Changing World to push ahead with an IPO, it certainly isn’t going to be the same offering that was expected back when the company first filed in August 2008. It’s now aiming to raise up to $42 million, a big drop from the estimated $100 million in the company’s original filing.

The bulk of the money raised could go toward the development of new facilities. In its filing, Changing World said it didn’t have any specific deals in place for new plants, but it’s started talks with several animal and food processors in North America and Europe, as well as with municipal treatment facilities and trap grease aggregators in the northeastern United States.

Backed by Apex Capital, ConAgra Foods, Stonehill Capital, and others, Changing World is aiming to list on the Nasdaq Global Market or NYSE Arca, but did not disclose what symbol it plans to trade under.

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