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WIKI ANALYSIS|
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
KiOR (NASDAQ:KIOR) is a biotech company, in development stage, focused on producing clean energy by converting non-food biomass in to a renewable energy sources such as biofuels and fuel blendstock. The company has developed a proprietary technology platform that transforms non-food biomass such as Southern Yellow Pine whole tree chips into a hydrocarbon-based oil. Preliminary manufacturing facilities are based in Mississippi and the company plans to expand production to other rural regions of the US, Canada, and Brazil. The business strategy is to sell the biofuel as a 'drop in' compatibility fuel on the open crude oil market. [1]
Business Overview
KiOR is in a development stage with no reported revenues at the point of IPO. For the full year 2010, KiOR did run a $46M in net loss which was a 230% increase in net loss as compared to the previous year.[2]
New Updates
The company's initial public offering of stock on the NASDAQ occurred on June 23, 2011. The company offered 2.7M shares each for $15, which was quite below the initial price range of $19-$21. The offering raised only a total of $150M - significantly less than the initial estimates. The lead managers of the IPO were Credit Suisse Group (CS), UBS AG (UBS), and Goldman Sachs Group (GS).[3]
Trends & Forces
Push for Clean Tech Oil of the Future
With the ever increasing market pressure to find alternative sources of energy other than traditional fossil fuels, biotech companies such as KiOR have flooded the market with a range of new renewable energy sources. Several recent key factors have played a major role in this recent development of events including:
- Diminishing oil well reserve projections
- Traditional oil price variation
- Recent oil spills (BP (BP) Horizon disaster in the Gulf of Mexico)
- Incentives from the Energy Independence and Security Act of 2007 [4]
As a result, the market for renewable fuels greatly expanded in the past few years and was recently segmented into four major categories based on decisions made by the Renewable Fuel Standard program. The categories were established in order to distinguish clear and independent production targets and goals for the future.
The four categories are as follows:
- Renewable Fuel: A renewable biomass fuel used to replace fossil fuels present in transportation fuel, heating oil or jet fuel.
- Advanced Biofuel: is a renewable fuel, not including corn ethanol.
- Biomass-based Diesel: A renewable fuel meeting the criteria of either biodiesel or non-ester renewable diesel. This diesel fuel is a subset of advanced biofuel and is unique as it cannot be co-processed with petroleum.
- Cellulosic Biofuel: A renewable fuel derived from any cellulose, hemicellulose or lignin. Cellulosic biofuel is also a subset of advanced biofuel.
.[6]
- ↑ KiOR S-1/A 2011 SUMMARY "Overview" pg 1-7
- ↑ KiOR S-1/A 2011 SUMMARY "SUMMARY CONSOLIDATED FINANCIAL DATA" pg 11
- ↑ Renaissance Capital - IPO Home "KiOR prices IPO at $15, well below the proposed $19-$21 range" 23 June 2011
- ↑ KiOR S-1/A 2011 INDUSTRY "The Renewable Fuels Industry" pg 68
- ↑ KiOR S-1/A 2011 INDUSTRY "The Renewable Fuels Industry" pg 67-73
- ↑
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