Rivian to Seek Over USD 50 Billion in Valuation

The US-based electric automaker Rivian is seeking a market valuation of  USD 54.6 Billion at least in IPO. The company mentioned its target in the amended prospectus submitted to the US Securities and Exchange Commission (SEC) Monday. It will be offering 135,000 shares of Class A stock through its IPO. According to the filing, the share price is expected to be between USD 57 and USD 62, and is planning to raise USD 8.4 Billion through IPO.

Rivian has provided the option to buy up to 20.25 million additional shares to underwriters. If the underwriters claim these amounts of shares, the company would bring in USD 9.6 Billion in its market debut. Nevertheless, the valuation can change with respect to the demand from the investors. According to CBNC, the company was seeking a valuation of USD 60 Billion, citing information from sources.

The company has proposed the SEC to debut the market with the name “RIVN.” It has reported a net loss of USD 996 Million in the first half of 2021, while it posted a net loss of USD 1.02 Billion in the year 2020 alone. “We are a development stage company and have not generated material revenue to date. Vehicle production and deliveries began in September 2021,” Rivian wrote in its filing.

Last week, Amazon revealed that it owns a 20% stake in the electric car company. The e-commerce giant has bought USD 499 Million worth of convertible notes that will be translated to Class A stock after IPO. In Monday’s filings, Rivian said its major investors T. Rowe Associates and Amazon are interested in buying shares worth up to USD 5 Billion at the time of IPO. The trillion-dollar company is not only the investor but had entered into an agreement with Rivian to build 100,000 electric vans by 2030, while it will supply them 10,000 vans next year.

If Rivian is successful in achieving the market valuation of USD 54.6 Billion, which can further surpass owing to the investors’ interest, its market cap will be close to the 118-years old company Ford. The latter company holds a 12% stake in the electric car company. However, Ford exited Rivian Board as Rivian filed for IPO. On the other hand, Ford has its own ambitious plans to become a major player in the electric car market. In September, it announced the plans to invest USD 11.4 Billion with its battery manufacturing partner SK to boost its electric car market expansion.

Latest Developments

In September 2021, Rivian collaborated with the conservation group The Nature Conservancy to fight climatic change and preserve biodiversity. Under the partnership, the adventure electric car-making company will provide pickup trucks to preserve sites in India. “We share a common, deep commitment to safeguard the planet’s lands and waters, and we’re excited to collaborate alongside an organization with such broad impact in land restoration and conservation,” said RJ Scaringe, Rivian founder and CEO said in a statement.

In July 2021, the company closed USD 2.5 Billion funding round, which was led by Amazon’s Climate Pledge Fund, Ford Motor Company, and D1 Capital Partners. Rivian has raised over USD 1 Billion since 2019. “This infusion of funds from trusted partners allows Rivian to scale new vehicle programs, expand our domestic facility footprint, and fuel international product rollout,” RJ Scaringe said in a statement.