The company plans to build the facility in Kuantan Port, Malaysia, using crude palm oil as its primary feedstock. The company said it had secured a variety of contractual arrangements that secured the palm oil feedstock at lower costs than European biofuels producers.
Mission Biofuels managing director Nathan Mahalingam said the company aimed to produce low cost biodiesel, specifically for the German market, which he said was the most developed market in the world at present.
Mission Biofuels said it had already secured a five-year offtake agreement with European commodity trader Godiva for up to 250,000tpa of its biodiesel production, far exceeding its initial proposed production capacity.
The company claims that if the proposed Malaysian plant operates at 80% capacity over the nine months after it has been commissioned, the intake/offtake agreements in place should generate $A74.3 million revenue in fiscal year 2008, delivering net profit after tax of $27.7 million.
The shares offered under the prospectus will represent about 29.6% of the issued capital of Mission Biofuels following completion of the IPO.
If Mission Biofuels successfully completes the IPO, the company will have 91 million shares on issue and, at the offer price, a market capitalisation of $91 million.
US investment group Tiger Private Investment Partners has already invested $13.6 million in the Perth biofuels company through converting notes, which will represent a 17.6% interest in Mission Biofuels.
Mission Biofuels said locating its operations in Malaysia ensured access to abundant supplies of palm oil and cheaper labour, land and utility costs along with other Malaysian government tax incentives.
The proposed Kuantan Port biofuels plant will be built with US-based Crown Iron Works as the contracted equipment and technology provider.
Crown has two biodiesel plants of similar capacity currently operational in North America.
The IPO is scheduled to close on May 4, with trading of the shares on the Australian Stock Exchange scheduled to commence in late May.
A prospectus is available at www.missionbiofuels.com.au.
