Reduced Hawkeye IPO Slated to Price Next Week

Renewable Fuel News, September, 2006 by Ngo, Peter

The substantially reduced IPO for Hawkeye Holdings, the third largest ethanol producer in the United States based on production capacity, is expected to price next week at $21 to $23 a share.

Iowa Falls, Iowa-based Hawkeye, which last month said in an amended registration statement it could raise as much as $523 million, has toned down its expectations to about $360 million, as investors have become wary of the rise in competition in an industry that is quickly maturing.

Also impinging the effort is the fact that gasoline prices have been falling at the pump, and the Chicago Board of Trade's October ethanol futures contract has come down 37% since June.

Hawkeye is the third initial public offering in the ethanol industry to take a shot at the market this year,...

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