rivian ipo: EV startup Rivian might be price almost as a lot as Honda in US IPO

Bengaluru: Rivian Automotive Inc,
which is backed by Amazon.com Inc., is concentrating on a valuation of greater than $53 billion for its US debut, making the electrical automobile producer doubtlessly nearly as useful as rival Honda Motor Co. Ltd.

The EV startup is trying to elevate as much as $8.4 billion, setting it as much as be the third-largest preliminary public providing by funds raised prior to now decade within the US. Solely three different corporations have raised greater than $8 billion whereas going public since 2011, Dealogic information exhibits. Alibaba Group Holding Ltd. raised a file $25 billion in 2014, Meta Platforms Inc. garnered $16 billion in 2012, whereas Uber Applied sciences Inc. made $8.1 billion in 2019.

Since final yr, firms within the EV house have emerged as a number of the hottest investments, particularly amongst SPAC buyers on the hunt for the following Tesla Inc.

Whereas Rivian has but to promote any vital quantity of its electrical vans or vehicles, it may doubtless be valued greater than Ferrari, though lower than Honda, Normal Motors or its backer Ford Motor Co.

Based in 2009 as Mainstream Motors by RJ Scaringe, the corporate modified to Rivian in 2011, a reputation that’s derived from “Indian River” in Florida, a spot Scaringe frequented in a rowboat as a youth. The startup has been investing closely to ramp up manufacturing, together with for its upscale all-electric R1T pickup truck, which was launched in September, beating out competitors from established rivals reminiscent of Tesla, Normal Motors and Ford.

Rivian, which disclosed almost $1 billion in losses for the primary half of this yr, had 48,390 pre-orders for its pickup vehicles and R1S SUVs within the US and Canada as of September. It’s presently pursuing a two-track technique: constructing electrical supply vans for Amazon and growing an electrical pickup and SUV model aimed toward prosperous people.

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Amazon, which
disclosed a 20% stake in Rivian on the finish of October, has ordered 100,000 of its electrical supply vans as a part of the e-commerce big’s effort to chop carbon footprint. Ford holds a greater than 5% share within the EV startup, based on a submitting with the US Securities and Trade Fee.

Stiff Competitors

Rivian, which confidentially filed paperwork for an IPO in August, will, nonetheless, face powerful competitors from automakers in each the buyer and industrial van markets.

Ford mentioned final week it has greater than 160,000 orders for its F-150 Lightning electrical pickup truck and that an electrical model of its Transit industrial van is “utterly bought out”. GM is gearing up manufacturing of electrical supply vans, sports activities utility autos and pickup vehicles.

Rivian mentioned it might promote 135 million shares at a value vary of between $57 and $62 every. Reuters reported in September that it may search a valuation of almost $80 billion and lift as much as $8 billion in its US itemizing. Morgan Stanley, Goldman Sachs and JPMorgan are the lead underwriters. Rivian will listing on the Nasdaq beneath the image “RIVN”.

Reuters’ Niket Nishant and Sanjana Shivdas in Bengaluru contributed to this story.

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