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Highlights
- Rivian has kept the price range of the Class A common stock between US$ 57 to US$ 62 per share.
- Rivian wants to list its shares on the Nasdaq Global Select Market and has applied to trade under 'RIVN' stock symbol.
- If the shares are sold at the high end of the price range, Rivian will raise around US$ 9.6 billion in gross proceeds.
Electric vehicle (EV) startup Rivian Automotive, Inc. has set terms for its initial public offering (IPO) and is reportedly targeting a valuation of up to US$ 54.6 billion.
Rivian has kept the price range of the Class A common stock between US$ 57 to US$ 62 per share, and it plans to sell 135 million shares. In addition, the underwriters for the IPO will get an option of buying additional 20.25 million shares.
When is the EV maker Rivian going public? How to Buy RIVN stock?
If the shares are sold at the high end of the price range, Rivian will raise around US$ 9.6 billion in gross proceeds. However, the numbers could change as it will depend on the demand from investors before the company goes public.
Significant details of Rivian IPO
Rivian wants to list its shares on the Nasdaq Global Select Market and has applied to trade under the 'RIVN' stock symbol.
The electric vehicle maker's investors include Amazon and T.Rowe Price, and they could buy shares of around US$ 5 billion at the time of the IPO.
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Those interested in the pre-IPO stock will get an option of purchasing a portion of the pre-IPO shares through the brokerage platform of SoFi, an online personal finance company.
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According to reports, Rivian plans to list its shares as soon as next week, and the expected valuation will take Rivian among the top EV startups across the world.
The leading underwriters for the IPO would be J.P. Morgan, Goldman Sachs & Co. LLC and Morgan Stanley.
Bottom line
According to an Allied Market Research report, the global EV market was valued at US$ 162 billion in 2019, and it is expected to increase up to US$ 802.81 billion by 2027. In addition, EVs could become mainstream as governments focus on fighting climate change.
Rivian could use the money from the IPO to compete with rivals Tesla, Lucid, and other automobile makers planning to start producing electric vehicles.
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The company is currently developing two electric vehicles- R1T, a pickup truck and R1S, which is an SUV car. In 2021, Rivian plans to deliver 20,000 vehicles, and the figure might double in 2022.
