Rivian Automotive, which is backed by Amazon.com, is targeting a valuation of more than US$53-billion for its US debut, making the electric vehicle manufacturer potentially almost as valuable as rival Honda Motor.
The start-up is looking to raise up to $8.4-billion, setting it up to be the third largest initial public offering by funds raised in the past decade in the US.
Only three other companies have raised more than $8-billion while going public since 2011, according to data from Dealogic.
Alibaba raised a record $25-billion in 2014, Meta Platforms garnered $16-billion in 2012, while Uber made $8.1-billion in 2019.
Since last year, companies in the EV space have emerged as some of the hottest investments, especially among Spac investors on the hunt for the next Tesla.
While Rivian has yet to sell any significant volume of its electric vans or trucks, it could likely be valued higher than Ferrari, although less than Honda, General Motors or its backer Ford.
Founded in 2009 as Mainstream Motors by RJ Scaringe, the company changed to Rivian in 2011, a name that is derived from “Indian River” in Florida, a place Scaringe frequented in a rowboat as a youth.
The start-up has been investing heavily to ramp up production, including for its upscale all-electric R1T pickup truck, which was launched in September, beating competition from established rivals such as Tesla, General Motors and Ford.
Two-track strategy
Rivian, which disclosed nearly $1-billion in losses for the first half of this year, had about 48 390 pre-orders for its bakkies and R1S SUVs in the US and Canada as of September.
It is currently pursuing a two-track strategy: building electric delivery vans for Amazon and developing an electric pickup and SUV brand aimed at affluent individuals.
Amazon, which disclosed a 20% stake in Rivian at the end of October, has ordered 100 000 of its electric delivery vans as part of the e-commerce giant’s effort to cut carbon footprint.
Ford holds a more than 5% share in the EV start-up, according to a filing with the US Securities and Exchange Commission.
Rivian, which confidentially filed paperwork for an IPO in August, will, however, face tough competition from car makers in both the consumer and commercial van markets.
Ford said last week it has more than 160 000 orders for its F-150 Lightning electric bakkie 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 bakkies.
Rivian said it would sell 135 million shares at a price range of between $57 and $62 each. Reuters reported in September that it could seek a valuation of nearly $80-billion and raise up to $8-billion in its US listing.
Morgan Stanley, Goldman Sachs and JPMorgan are the lead underwriters. Rivian will list on the Nasdaq under the symbol “RIVN”. — Reported by Noor Zainab Hussain and Niket Nishant, with additional reporting by Sanjana Shivdas, (c) 2021 Reuters
