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The Perth-based company is offering 53.34 million shares at $1.50 each to raise the funds, but could accept a further $14 million through oversubscriptions.
Reuters on Friday reported a source saying that the company would have a stock market value of about $500 million after the share offering.
Natural Fuel, which plans to list on the Australian Stock Exchange next month, said the float would be the biggest biodiesel IPO in Australia to date.
The first phase of the $130 million plant in Singapore is scheduled to come onstream by the end of next year and expected to produce about 600,000 tonnes of biodiesel.
A second and third phase would raise output to 1.8 million tonnes per year.
Managing director Richard Selwood reportedly said Natural Fuel was uniquely position to be a global producer of biodiesel, with strategically located assets in Australia and Singapore.
It also has operations planned for the US and eventually Europe.
“Natural Fuel is distinguishing itself as an international leader through its global approach, strategic asset locations, use of proven, world-class technologies, and the securing of long-term supply and off-take agreements,” Australian Associated Press (AAP) quoted Selwood saying.
“The biodiesel industry is well-established in Europe and the US market is growing strongly. Australia and Asia are playing catch-up.”
Selwood said the IPO is the company’s next major step in an international roll-out that aims to propel Natural Fuel to the forefront of the biodiesel industry.
AAP said Natural Fuels is forecasting earnings before interest, tax, depreciation and amortisation of $129.4 million and net profit of $119 million in 2007-08.
Natural Fuels focuses on the production of biodiesel in Australia, Singapore, and the United States and supplies high quality biofuels locally, regionally and globally.
Its first biodiesel plant in Darwin is expected to begin operation in late 2006.
The IPO, which opens on November 24 and closes on December 13, is underwritten to Commonwealth Securities and BBY.
Natural Fuel hopes to list on December 21.
