Rivian Automotive Inc, which is backed by Amazon.com Inc, is concentrating on a valuation of greater than $53 billion for its U.S. debut, making the electric vehicle producer doubtlessly nearly as useful as rival Honda Motor.
The startup is seeking to increase as much as $8.4 billion, setting it as much as be the third-largest preliminary public providing (IPO) by funds raised previously decade in the USA.
Solely three different firms have raised greater than $8 billion whereas going public since 2011, in accordance with information from Dealogic.
Alibaba raised a report $25 billion in 2014, Meta Platforms Inc garnered $16 billion in 2012, whereas Uber made $8.1 billion in 2019.
Since final yr, firms within the EV area have emerged as a number of the hottest investments, particularly amongst SPAC buyers on the hunt for the subsequent Tesla Inc.
Whereas Rivian has but to promote any important quantity of its electrical vans or vans, it may probably be valued increased than Ferrari, though lower than Honda, Basic Motors or its backer Ford Motor Co.
Based in 2009 as Mainstream Motors by R. J. Scaringe, the corporate modified to Rivian in 2011, a reputation that’s derived from “Indian River” in Florida, a spot Scaringe frequented in a rowboat as a youth.
The startup has been investing closely to ramp up manufacturing, together with for its upscale all-electric R1T pickup truck, which was launched in September, beating out competitors from established rivals resembling Tesla, General Motors and Ford.
Rivian, which disclosed almost $1 billion in losses for the primary half of this yr, had about 48,390 pre-orders for its pickup vans and R1S SUVs in the USA and Canada as of September.
It’s presently pursuing a two-track technique: constructing electrical supply vans for Amazon and creating an electrical pickup and SUV model aimed toward prosperous people.
Amazon, which disclosed a 20% stake in Rivian on the finish of October, has ordered 100,000 of its electrical supply vans as a part of the e-commerce large’s effort to chop carbon footprint.
Ford holds a greater than 5% share within the EV startup, in accordance with a submitting with the U.S. Securities and Alternate Fee.
STIFF COMPETITION
Rivian, which confidentially filed paperwork for an IPO in August, will, nonetheless, face powerful competitors from automakers in each the patron and industrial van markets.
Ford stated final week it has greater than 160,000 orders for its F-150 Lightning electrical pickup truck and that an electrical model of its Transit industrial van is “fully offered out.”
Basic Motors is gearing up manufacturing of electrical supply vans, SUVs and pickup vans.
Rivian stated it will promote 135 million shares at a value vary of between $57 and $62 every. Reuters reported in September that it may search a valuation of almost $80 billion and lift as much as $8 billion in its U.S. itemizing.
Morgan Stanley, Goldman Sachs and J.P. Morgan are the lead underwriters. Rivian will checklist on the Nasdaq below the image “RIVN”.
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