Rivian Automotive, an electric car start-up, submitted a revised prospectus on Monday. The prospectus shows that the company’s goal is to achieve the highest level in an IPO (initial public offering) transaction. Market valuation of 54.6 billion US dollars.
The company said it plans to issue 135 million shares in the IPO, priced at between US$57 and US$62 per share, and provide underwriters with an over-allotment option to purchase additional shares of up to 20.25 million shares. According to the upper limit of this pricing range, and assuming that the underwriter exercises the aforementioned options, Rivian will be able to raise approximately US$9.6 billion on the first day of listing.
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But before the company goes public, these figures may change according to the actual needs of investors. Earlier Monday, a source familiar with the situation revealed that the company would seek a valuation of more than $60 billion. People familiar with the matter said that Rivian plans to go public as early as next week. According to Rivian’s IPO prospectus filed last month, the company plans to list on the Nasdaq under the ticker symbol “RIVN.”
Rivian said in the revised prospectus filed on Monday that investors including Amazon and T. Rowe Price have indicated that they are interested in buying a total of up to $5 billion in stock at the company’s IPO. In addition, Rivian said that the company will also allow retail investors to purchase some IPO shares through SoFi’s online brokerage platform.
If Rivian can really achieve the above valuation, it will make it a giant among a group of electric car start-ups recently listed in the United States including Fisker, Lordstown Motors, Lucid, etc., and reach a market value equivalent to that of NIO. At the same time, this also means that Rivian’s market value will be only slightly lower than traditional auto giants, such as the company’s investor Ford Motor, Stellattis, which was formed by the merger of Fiat Chrysler and PSA, and General Motors.
Rivian is developing a “last mile” commercial delivery van for Amazon. The latter has previously stated that the company’s plan is to have 10,000 vans on the road by 2022 and 100,000 by 2030. Rivian also launched an electric pickup truck R1T before Tesla, GM and Ford. This model was well received in the early days of its launch. Rivian pointed out in the revised prospectus that as of the end of October, the company has delivered 156 R1T vehicles and plans to deliver 1,000 vehicles by the end of this year.
Amazon disclosed information last week that the company holds a 20% stake in Rivian, plus other equity investments, with a book value of up to $3.8 billion. Earlier this month, Amazon stated in another filing with the US Securities and Exchange Commission (SEC) that so far, the company has invested more than $1.3 billion in Rivian.
