Its US IPO Could Value EV Startup Rivian Nearly As Much As Honda

Rivian Automotive Inc, funded by Inc, is aiming for a value of more than $53 billion for its U.S. debut, putting the electric car maker on par with competitor Honda Motor.

The business is aiming to raise up to $8.4 billion, making it the third-largest initial public offering (IPO) in the United States in terms of cash raised in the last decade.

According to Dealogic statistics, only three other businesses have raised more than $8 billion while going public since 2011.

Alibaba received a record $25 billion in 2014, Meta Platforms Inc received $16 billion in 2012, and Uber received $8.1 billion in 2019.

Companies in the EV field have emerged as some of the hottest investments in the previous year, particularly among SPAC investors looking for the next Tesla Inc.

While Rivian has yet to sell a large number of electric vans or trucks, it is expected to be valued more than Ferrari, but lower than Honda, General Motors, or its sponsor Ford Motor Co.

R. J. Scaringe founded Mainstream Motors in 2009 and changed the name to Rivian in 2011, a name inspired from “Indian River” in Florida, a spot Scaringe frequented in a rowboat as a youth.

The firm has been actively investing in production, especially for its upmarket all-electric R1T pickup truck, which was released in September, beating out established rivals such as Tesla, General Motors, and Ford.

Rivian had over 48,390 pre-orders for its pickup trucks and R1S SUVs in the United States and Canada as of September, despite reporting almost $1 billion in losses for the first half of this year.

It is now pursuing a two-pronged strategy: producing electric delivery vans for Amazon and launching an affluent-targeted electric pickup and SUV brand.

Amazon, which announced a 20% interest in Rivian at the end of October, has bought 100,000 of its electric delivery trucks as part of its aim to reduce its carbon impact.

According to a filing with the US Securities and Exchange Commission, Ford owns more than 5% of the EV firm.

Rivian, which filed confidentially for an IPO in August, will face stiff competition from automakers in both the consumer and business van industries.

Ford announced last week that it has received over 160,000 reservations for its electric F-150 Lightning pickup truck and that an electric version of its Transit commercial van is “totally sold out.”

GM is ramping up manufacturing of electric delivery vans, SUVs, and pickup vehicles.

Rivian announced plans to sell 135 million shares at a price range of $57 to $62 a share. According to Reuters, it might seek a valuation of roughly $80 billion and raise up to $8 billion in an initial public offering in the United States. more info

The principal underwriters are Morgan Stanley, Goldman Sachs, and J.P. Morgan. Rivian will be listed on the Nasdaq under the ticker symbol “RIVN.”


Categories: Creativity, Economy & Finance, Entrepreneurship, Regulations & Legal, Strategy, Sustainability, Uncategorized

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