Rivian IPO: EV Maker Boosts IPO Price Range, Aims for $65-Billion Valuation

Wall Street's big IPO investors bet on Rivian to be the next big player in a sector dominated by Tesla.

Rivian IPO: EV Maker Boosts IPO Price Range, Aims for $65-Billion Valuation

Photo Credit: Reuters

Rivian had earlier this week aimed for a valuation of more than $53 billion

Highlights
  • Rivian IPO could help the company become more valuable than Stellantis NV
  • The EV market is booming as consumers are more environment conscious
  • Rivian will list on the Nasdaq under the symbol "RIVN"
Advertisement

Rivian Automotive, backed by Amazon.com, on Friday significantly raised the expected offer price of its shares, with the electric vehicle manufacturer aiming for a valuation of as much as $65 billion (roughly Rs. 4,82,200 crores) in its initial public offering.

It had earlier this week aimed for a valuation of more than $53 billion (roughly Rs. 3,93,200 crores) at a price of $62 (roughly Rs. 4,600) per share. The company now expects to sell 135 million shares in the range of $72-$74 apiece to raise nearly $10 billion on November 9.

The increased price band follows a successful investor roadshow this week, as Wall Street's big IPO investors bet on Rivian to be the next big player in a sector dominated by Tesla.

The IPO could make Rivian one of the only three companies that have raised more than $8 billion (roughly Rs. 59,350 crores) in a decade after Alibaba and Facebook.

While the startup has yet to sell any significant volume of its electric vans or trucks, a $65 billion valuation for Rivian could make it more valuable than Fiat maker Stellantis NV and bring it closer to legacy automakers Ford and General Motors.

Rivian has been investing heavily to ramp up production, including for its upscale all-electric R1T pickup truck which was launched in September, beating out competition from established rivals such as Tesla, General Motors, and Ford.

The company had about 55,400 R1T and R1S preorders in the United States and Canada, as of October 31.

Rivian said it had started deliveries of the R1T and had recorded revenue for the three months ended September 30. Net loss for that period, however, is estimated to increase due to higher production costs.

The EV market is booming as consumers are more environment conscious and is seen as a symbol of luxury for many brands. Tesla produced a record number of cars in its latest quarter, suggesting strong demand for electric cars.

Amazon has ordered 100,000 of Rivian's electric delivery vans as part of the e-commerce giant's broader effort to cut its carbon footprint.

Rivian will, however, face competition from automakers in both 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 is "completely sold out."

General Motors is gearing up production of electric delivery vans, SUVs and pickup trucks.

Morgan Stanley, Goldman Sachs, and JP Morgan are the lead underwriters. Rivian will list on the Nasdaq under the symbol "RIVN". The valuation includes shares that underwriters could exercise under the "greenshoe" option.

© Thomson Reuters 2021


What's most interesting about Apple's new MacBook Pros, M1 Pro and M1 Max silicon, AirPods (3rd Generation), and Apple Music Voice plan? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

SolarWinds Investors Allege Board Knew About Cybersecurity Risks Ahead of Massive Breach
Landsat 9: NASA, USGS Release First Light Images of Earth Capture by Satellite
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »