Chinese EV maker NIO launches $1bn US IPO
NIO Inc, a Chinese electric vehicle manufacturing startup, has floated on the US Stock Exchange with an IPO worth US$1bn.
NIO, which is the first Chinese electric vehicle company to go public in the US, put 160mn American Depository Shares (ADSs) up for sale at $6.26 each, making up a total offering of around $1bn depending on whether underwriters choose to purchase additional ADSs. The IPO brings NIO’s value as a company up to $6.41bn.
NIO designs, jointly manufactures and sells electric vehicles with a focus on innovation and next generation technologies such as smart connectivity, autonomous driving and AI.
The company has said it intends to spend 40% of net proceeds from the IPO on research and development of products, services and technology. It will spend 25% on sales, marketing and the development of sales channels; 25% is to go toward developing manufacturing facilities and roll-out of supply chain; and the remaining 10% will be used for general corporate purposes and working capital.
The manufacturing startup states as part of its NASDAQ filing: “Our mission is to shape a joyful lifestyle by offering premium smart electric vehicles and being the best user enterprise. We are a pioneer in China’s premium electric vehicle market.”
NIO has also outlined that its primary competitive factors include pricing; innovation; performance quality; safety; service and charging options; user experience; design and styling; and manufacturing efficiency.
Currently, NIO has its global headquarters in Shanghai but also boasts offices in San Jose, Munich, London, Beijing and nine other locations. Founded in 2014, it has grown to employ over 6000 staff.
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.