The electric car start-up Rivian Automotive is aiming for a valuation of more than 60 billion US dollars when it goes public next week. With a rating like this, Rivian would outperform recently publicized US electric vehicle companies such as Fisker, Lordstown Motors and Lucid. That would also mean that Rivian is worth only slightly less than traditional automotive groups such as Ford, which itself holds shares in Rivian, GM or the Stellantis group that emerged from the merger of Fiat-Chrysler and PSA.
Rivian’s current stock market prospectus assumes goodwill of $ 54.6 billion. In the initial public offering (IPO), 135 million shares of category A are to be issued at a price of 57 to 62 dollars. Rivian’s partner banks would have the opportunity to buy a further 20.25 million shares themselves (greenshoe). Should they take advantage of that, the IPO could gross over $ 9.6 billion.
But now Rivian wants to raise the price even more so that the company value would reach 60 billion dollars. This is reported by the US media and citing insiders. The issue price would have to reach $ 68. The IPO could take place as early as next week. In addition to the category A shares, there is also a significantly smaller amount of B-paper with tenfold voting rights. They are not part of the IPO.
Amazon is a major shareholder and customer
Rivian started series production of its R1T electric pickup in September. The vehicles are to be delivered to customers from the New Year. Rivian would be faster on the market than Tesla with the Cybertruck, which is also due to roll on US roads in 2022. Rivian has developed an electric van for Amazon.
Amazon.com is also a major shareholder in Rivians: The retail group announced last week that it would hold 20 percent of Rivian. To date, Amazon has invested more than $ 1.3 billion in Rivian, as Rivian revealed in a securities application earlier this month. Ford holds about twelve percent of Rivian.
In a financing round in July, Rivian received a cash injection of $ 2.5 billion. The largest financiers included the Amazon Climate Pledge Fund, the US investment company D1 Capital and Ford. In total, Rivian has received around 10.5 billion US dollars from investors since 2019. The IPO could double that amount.