The IPO of VeraSun has recently been a very hot topic. VeraSun's offering is expected to price on or about June 8th as the company expects to price its 17.25 million shares at between 18 to 20 apeice to raise about $320 million.

VeraSun's IPO presentation can be viewed here

Key facts I was able to extract from the presentation:

- VeraSun are innovators in the Ethanol industry as they built the first and second 100 million gallon ethanol production plants

- Two plants are in operation today, by the end of 2008 they expect to have an ethanol capacity of about half a billion gallons. Three more plants are to be built.

Plants	Aurora	Fort Dodge	Charles City	Northwestern Iowa	Welcome Minnesota
Condition	In Operation	In Operation	Under Construction	Under Construction	Under Construction
Date of Operation	Dec 2003	Oct 2005	Jul/Aug 2007	Q1 2008	Q1 2008
Ethanol Capacity (MMGY)	120	110	110	110	110

- Verasun is the largest pure play company, this fact I found most interesting. The table below shows VeraSun vs. Aventine and Pacific Ethanol in this statistic.

VeraSun	Current Production of Ethanol/Future Production of Ethanol	230 mmgy	340 mmgy
Aventine	Current Production of Ethanol/Future Production of Ethanol	150 mmgy	207 mmgy
Pacific Ethanol	Current Production of Ethanol/Future Production of Ethanol	0 mmgy	35 mmgy

- Verasun is second behind Archer Daniels Midland in overall ethanol production

- VeraSun has three products: Unbranded Ethanol, Branded Ethanol and Distillers Grains, here is their process:

-Financial Comparison:
(In Millions)

	12 months ending Dec 2005	LTM March 2006	Q1 05	Q1 06
Total Revenues	236.4	302.2	44.9	110.7
Gross Profit	35.5	58.7	6.2	29.3
EBITDA	29.9	54.1	5.4	29.6
Net Income	0.3	1.3	1.7	2.7
Ethanol Sold	126.3	156.2	24.7	54.5

The reason that there was such a significant increase from Q1 05 to Q1 06 was the construction of the Fort Dodge plant.

-VeraSun is currently 210 million dollares in debt

-The primary IPO offering will be used to fund the two plants under construction, Northwestern and Welcome
Sources:

IPO Proceeds	209 million
Cash on Hand as of March 31, 2006	43.3 million
Cash needed from operations	45.3 million
Total Sources	297.6 million

Uses:

Northwestern Iowa Plant	140 million
Welcome, Minnesota	140 million
Fees and Expenses	17.6 million
Total Uses	297.6 million

VeraSun is allready a proven company in this industry, they have the fundamentals, the production and a bright future. June 8th will be an interesting and volatile day for investors as most companies IPO debut's are.