EV maker Rivian boosts IPO price range, aims for $65 billion valuation By Reuters

(Reuters) -Rivian Automotive, backed by Amazon.com Inc (NASDAQ:), on Friday considerably raised the anticipated supply worth of its shares, with the electrical automobile producer aiming for a valuation of as a lot as $65 billion in its preliminary public providing.

It had earlier this week aimed for a valuation of greater than $53 billion at a worth of $62 per share. The corporate now expects to promote 135 million shares within the vary of $72-$74 apiece to boost almost $10 billion on Nov. 9.

The elevated worth band follows a profitable investor roadshow this week, as Wall Road’s large IPO traders guess on Rivian to be the following large participant in a sector dominated by Tesla (NASDAQ:).

The IPO may make Rivian one of many solely three corporations which have raised greater than $8 billion in a decade after Alibaba (NYSE:) and Fb (NASDAQ:).

Whereas the startup has but to promote any important quantity of its electrical vans or vehicles, a $65 billion valuation for Rivian may make it extra helpful than Fiat maker Stellantis NV and produce it nearer to legacy automakers Ford and Common Motors (NYSE:).

Rivian 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 Inc, Common Motors and Ford.

The corporate had about 55,400 R1T and R1S preorders in america and Canada, as of Oct. 31.

Rivian stated it had began deliveries of the R1T and had recorded income for the three months ended September 30. Web loss for that interval, nonetheless, is estimated to extend as a result of larger manufacturing prices.

The EV market is booming as customers are extra surroundings acutely aware and is seen as an emblem of luxurious for a lot of manufacturers. Tesla produced a file variety of vehicles in its newest quarter, suggesting robust demand for electrical vehicles.

Amazon has ordered 100,000 of Rivian’s electrical supply vans as a part of the e-commerce large’s broader effort to chop its carbon footprint.

Rivian will, nonetheless, face competitors from automakers in each the patron and industrial van markets.

Ford stated 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 offered out.”

Common Motors is gearing up manufacturing of electrical supply vans, SUVs and pickup vehicles.

Morgan Stanley (NYSE:), Goldman Sachs (NYSE:) and J.P. Morgan are the lead underwriters. Rivian will record on the Nasdaq beneath the image “RIVN”. The valuation consists of shares that underwriters may train beneath the “greenshoe” possibility.