Rivian Automotive, backed by Amazon.com Inc, on Friday considerably raised the anticipated supply worth of its shares, with the electrical car 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 firm now expects to promote 135 million shares within the vary of $72-$74 apiece to lift practically $10 billion on Nov. 9.
The elevated worth band follows a profitable investor roadshow this week, as Wall Street’s huge IPO traders wager on Rivian to be the following huge participant in a sector dominated by Tesla.
The IPO may make Rivian one of many solely three firms which have raised greater than $8 billion in a decade after Alibaba and Facebook.
While the startup has but to promote any vital quantity of its electrical vans or vans, a $65 billion valuation for Rivian may make it extra useful than Fiat maker Stellantis NV and convey it nearer to legacy automakers Ford and General Motors.
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 equivalent to Tesla Inc, General Motors and Ford.
The firm had about 55,400 R1T and R1S preorders within the United States 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.
Net loss for that interval, nonetheless, is estimated to extend resulting from greater manufacturing prices.
The EV market is booming as customers are extra surroundings aware and is seen as an emblem of luxurious for a lot of manufacturers.
Tesla produced a file variety of automobiles in its newest quarter, suggesting sturdy demand for electrical automobiles.
Amazon has ordered 100,000 of Rivian’s electrical supply vans as a part of the e-commerce big’s broader effort to chop its carbon footprint.
Rivian will, nonetheless, face competitors from automakers in each the buyer and business 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 business van is “fully bought out.
“General Motors is gearing up manufacturing of electrical supply vans, SUVs and pickup vans.Morgan Stanley, Goldman Sachs and J.P. Morgan are the lead underwriters.
Rivian will listing on the Nasdaq beneath the image “RIVN”.
The valuation contains shares that underwriters may train beneath the “greenshoe” possibility.
