The electric-vehicle maker is expected to raise about $12 billion in the offering, which values the company at more than $77 billion.
According to a person familiar with the matter, Rivian Automotive Inc. Priced its much-anticipated initial public offering at $78 per share, well above its increased expectations, valuing the electric-automaker at more than $77 billion on a fully diluted basis.
Amazon.com Inc. The company, backed by the U.S. company, was hoping to make an offer of about $12 billion by selling more shares than originally planned. The volume of shares sold was still trending around late Tuesday, a person familiar with the matter said, so that number could change.
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Rivian said Friday it aims to sell shares at a price of $72 to $74, up from its initial target range of $57 to $62.
On its roadshow pitch to investors, Rivian’s bankers compared the company to electric-vehicle giant Tesla Inc., whose explosive stake growth has given it a market capitalization of more than $1 trillion. Although Rivian is at a very early stage, has suffered major losses and had no revenue until recently, investors were clearly receptive and ready for the company’s growth potential.
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Before its IPO, Rivian garnered a long list of so-called anchor investors who had expressed interest in buying $5 billion in the stock. Those who said they would buy shares at the price of the IPO included Amazon and investment firm T. Rowe Price Group Inc., Cotu Management and Franklin Templeton.
RJ Scaring founded the company that would become Rivian in 2009, originally with plans to build a sports car. It shifted its focus to electric pickup trucks and SUVs as that segment of the auto market grew in popularity. Startups have burned through cash prodigiously. From early 2020 to this June, it posted an operating loss of nearly $2 billion, according to the company’s filings. It had estimated losses of between $745 million and $795 million in the previous quarter, according to the company’s filings.
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Rivian has said that it will launch three models by the end of the year. One of them is an electric delivery truck designed and built for Amazon. The e-retailer has an order for 100,000 trucks, which Rivian said in the filing that it plans to deliver by 2025.
As the Wall Street Journal reports, its valuation of more than $77 billion is a multiple of Rivian’s value of less than a year: The company was valued at $27.6 billion in a fundraising round in January.