Gushan files for $250M biodiesel IPO

Fuzhou City, China-based biodiesel producer Gushan Environmental Energy is planning an initial public offering of up to $250 million, but did not disclose the terms of the American Depositary Share sale in its filing with the U.S. Securities and Exchange Commission.

The company, which said it's the largest biodiesel producer in China in terms of annual production capacity in 2006, plans to use proceeds from the offering to expand its production capacity and research and development efforts.

Founded in 2001, Gushan currently has capacity for 190,000 tons of biodiesel per year. The company produced 158,994 tons in 2006.

Gushan said it sells its biodiesel and byproducts in China, primarily using vegetable oil offal and used cooking oil as feedstocks.

The company has three plants in Sichuan, Hebei and Fujian provinces in China, and plans to build four more facilities around the country and expand capacity at its existing plants to reach 400,000 tons by the end of 2008.

Merrill Lynch & Co. is serving as lead underwriter on the IPO, with CIBC World Markets and Piper Jaffray also underwriting the share sale.

Gushan plans to list its American Depositary Shares on the New York Stock Exchange under the symbol "GU."

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