Rivian Automotive Inc on Friday significantly raised the expected offer price of its shares, with the Amazon.com Inc-backed electric vehicle (EV) manufacturer aiming for a valuation of as much as US$65 billion in its initial public offering (IPO).
It had earlier this week aimed for a valuation of more than US$53 billion at a price of US$62 per share.
The company now expects to sell 135 million shares in the range of US$72 to US$74 apiece to raise nearly US$10 billion at its trading debut tomorrow.
Photo: Reuters
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 Inc.
The IPO could make Rivian one of only three companies that have raised more than US$8 billion at their trading debut in the past decade, after Alibaba Group Holding Ltd (阿里巴巴) and Facebook Inc.
While the start-up has yet to sell any significant volume of its electric vans or trucks, a US$65 billion valuation for Rivian could make it more valuable than Fiat maker Stellantis NV and bring it closer to legacy automakers Ford Motor Co and General Motors Co.
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 Tesla, General Motors and Ford.
As of the end of last month, Rivian had about 55,400 R1T and R1S preorders in the US and Canada.
The company said it had started deliveries of the R1T and recorded revenue for the three months ended Sept. 30.
However, net loss for that period is estimated to increase due to higher production costs.
The electric vehicle 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 vehicles last quarter, suggesting strong demand in the sector.
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.
However, Rivian might 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 is “completely sold out.”
General Motors is also gearing up production of electric delivery vans, sports utility vehicles and pickup trucks.
Morgan Stanley, Goldman Sachs Group Inc and JPMorgan Chase & Co are Rivian’s lead underwriters.
Rivian would list on the NASDAQ under the symbol “RIVN.”
The valuation includes shares that underwriters could exercise under the “greenshoe” option.
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