Rivian Gets Closer to IPO, Seeking Over $50 Billion Evaluation

Rivian, an electric truck maker backed by Amazon and Ford Motor, is aiming to be valued above $50 billion in its initial public offering next week.

The company updated its registration documents with the Securities and Exchange Commission on Monday to say it was aiming to sell 135 million Class A common shares priced between $57 and $62 a share, raising up to $8.4 billion.

Rivian is one of many start-ups hoping to capture a share of the electric vehicle market, which is expected to grow exponentially over the next two decades. The company is chasing Tesla, the leader in the field. Tesla recently topped $1 trillion in value, and it made its first full-year profit last year.

Amazon has invested over $1.8 billion in Rivian, and it disclosed last week that it held a 20 percent stake in the company. Amazon, which has been building up its own delivery operation, has a contract to buy 100,000 delivery vehicles from Rivian.

Founded in 2009, Rivian makes an upscale pickup truck and a sport-utility vehicle, both designed to be driven off-road. “Keep the world adventurous forever,” the company proclaims in its I.P.O. filing.

At $62 per share, Rivian could have a value as high as $61 billion if extra shares that might get issued are counted. These include the additional shares that may get issued in the offering, if there is demand for them, and some shares underlying employee stock compensation, said Matthew Kennedy, a senior I.P.O. market strategist at Renaissance Capital.

Rivian first published its papers to go public in August, then aiming for a valuation of around $70 billion. Rivian has lost $2 billion since the start of last year, underscoring the costs and risks of developing electric vehicles. It expects to spend roughly $8 billion on facilities and equipment through the end of 2023.

Peter Eavis contributed reporting.

Source link


Renting a House in Pune: Everything You Need to Know

Pune is a smaller counterpart of Mumbai but less crowded and dirty. Also known as the cultural capital of Maharashtra, Pune has a long...

Covid outbreak at Chinese port exacerbates global supply chain delays

Weeks of disruption at one of the world’s largest container terminals in southern China have put a huge strain on the already-stretched global...

Patsy Kensit is pictured with millionaire property tycoon fiancé Patric Cassidy for the first time

When I disclosed last September that Patsy Kensit had got engaged, some refused to believe it.After all, the actress had been married four times...

The marvelous benefits of using custom soap boxes for the brands

A bar of soap is the best invention of human beings in the past years. It allows the people to clean themselves and remove...

G7/corporate tax: a hard but fragile bargain

Unprecedented. Seismic. World-changing. The finance chiefs of G7 countries reached for superlatives as they hailed Saturday’s corporate tax deal. After nearly a decade...