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Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):

Ethanol Producers Find Tough IPO Environment

  • Summary: Hawkeye Holdings (HWY), one of this week's eight scheduled IPOs, announced that it has delayed the offering due to market conditions. According to Dealogic, this is the 33rd potential IPO this year to postpone its offering for this reason. Two additional ethanol producers have recently filed for IPOs: Dallas-based ASAlliances Biofuels filed a preliminary prospectus last Friday, and US BioEnergy (USBE) filed for a $300 million IPO in August. The three companies have very short operating histories: Hawkeye began production in November 2004, and ASAlliances is pre-revenue stage having been formed less than two years ago. Both are owned by private equity firms. US BioEnergy was formed in 2004 as well. The two "successful" ethanol IPOs of the year--VeraSun (VSE) and Aventine (AVR)--are trading below their IPO prices.
  • Related links: Seeking Alpha coverage of the ethanol sector. ♦ IPO filings: Hawkeye, US BioEnergyApprehension Surrounds Upcoming Ethanol IPOsSeeking Alpha's IPO analysis

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Source: Ethanol IPO Hype is Gone