Electric vehicle maker Rivian increases IPO price range, targets $ 65 billion valuation, Auto News, ET Auto
Rivian Automotive, backed by Amazon.com Inc, significantly increased the expected offer price of its shares on Friday, with the electric vehicle maker aiming for a valuation of up to $ 65 billion when it went public.
He had targeted earlier this week a valuation of more than $ 53 billion at a price of $ 62 per share. The company now plans to sell 135 million shares in a range of $ 72 to $ 74 apiece to raise nearly $ 10 billion on November 9.
The increased price bracket follows a successful investor tour this week, as large Wall Street IPO investors bet on Rivian to be the next big player in an industry dominated by Tesla.
The IPO could make Rivian one of only three companies to raise more than $ 8 billion in a decade after Alibaba and Facebook.
While the startup is yet to sell a significant volume of its electric vans or trucks, a valuation of $ 65 billion for Rivian could make it more valuable than automaker Fiat Stellantis NV and bring it closer to automakers Ford and General Motors. .
Rivian has invested heavily to ramp up production, including its premium all-electric R1T pickup truck which launched in September, beating competition from established rivals such as Tesla Inc, General Motors and Ford.
As of October 31, the company had approximately 55,400 pre-orders of R1T and R1S in the United States and Canada.
Rivian said he has started deliveries of the R1T and recorded revenue for the three months ended September 30. However, the net loss for this period is expected to increase due to higher production costs.
The electric vehicle market is booming as consumers are more environmentally conscious and is seen as a symbol of luxury for many brands. Tesla produced a record number of cars in its last quarter, suggesting strong demand for electric cars.
Amazon has ordered 100,000 electric delivery vans from Rivian as part of the e-commerce giant’s larger effort to reduce its carbon footprint.
Rivian will, however, face competition from automakers in the consumer and commercial van markets.
Ford said it has more than 160,000 orders for its F-150 Lightning electric pickup truck and that an electric version of its Transit commercial van was “completely sold out.”
General Motors is ramping up production of electric delivery vans, SUVs and pickup trucks.
Morgan Stanley, Goldman Sachs and JP Morgan are the main underwriters. Rivian will appear on the Nasdaq under the symbol “RIVN”. The valuation includes the actions that the Underwriters could exercise under the “greenshoe” option.