The company now expects to sell 135 million shares in the $72-$74 range on November 9th to raise approximately $10 billion.
see photosEnlarged price band follows a successful investor roadshow this week
Amazon.com Inc.-backed Rivian Automotive significantly increased the expected offering price of its shares on Friday, with the electric vehicle maker targeting a $65 billion valuation in its initial public offering. It targeted a valuation of more than $53 billion at a price of $62 per share earlier this week. The company now expects to sell 135 million shares in the $72-$74 range on November 9th to raise approximately $10 billion.
The increased price band follows a successful investor roadshow this week, as big Wall Street IPO investors bet on Rivian to become the next big player in the Tesla-dominated sector.
The IPO could make Rivian one of three companies that have raised more than $8 billion in a decade, behind Alibaba and Facebook.
While the startup hasn’t sold any significant amounts of its electric vans or trucks yet, a $65 billion valuation for the Rivian could make it more valuable than Fiat maker Stellantis NV and put it closer to legacy automakers Ford and General Motors. can bring.
Rivian is investing heavily to ramp up production, including its upscale all-electric R1T pickup truck, which was launched in September, beating out competition from established rivals such as Tesla Inc., General Motors and Ford.
Rivian said it has started deliveries of the R1T and reported revenue for the three months ended September 30.
As of October 31, the company had approximately 55,400 R1T and R1S pre-orders in the United States and Canada.
Rivian said it has started deliveries of the R1T and reported revenue for the three months ended September 30. However, the net loss for that period is projected to increase due to higher production costs.
The EV market is booming as consumers become more environmentally conscious and is seen as the epitome 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 a broader effort to cut the e-commerce giant’s carbon footprint.
However, the Rivian will 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 an electric version of its Transit commercial van “is completely sold out.”
General Motors is starting production of electric delivery vans, SUVs and pickup trucks.
0 notes
Morgan Stanley, Goldman Sachs and JP Morgan are the principal underwriters. Rivian will be listed on the Nasdaq under the symbol “RIVN”. Valuation includes shares that underwriters can exercise under the “greenshoe” option.
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