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Highlights
- EV start-up Rivian is planning a market float of size of US$ 8.4 billion.
- The start-up is expecting to have a market valuation of about US$ 53 billion.
- The company’s IPO price range is set between US$ 57 and US$ 62.
US-based electric vehicle (EV) manufacturing start-up, Rivian, made an amended regulatory filing with the SEC on Monday this week, outlining its initial public offering (IPO) plans.
The company, which is backed by e-commerce major Amazon and carmaker Ford, estimates its IPO size to be around US$ 8.4 billion, as per the filing.
The company plans to float on the NASDAQ exchange under the ticker symbol RIVN and possibly by next week, according to reports.
Rivian is going to be one of the most hotly anticipated IPOs of 2021.
Rivian’s IPO details
The start-up plans to have an IPO issue price range between US$ 57 and US$ 62. It aims to issue 135 million ordinary shares.
Additionally, underwriters have the option to purchase a further 20.25 million shares, which would increase Rivian’s total capital raised to about US$ 9.6 billion.
This company is expected to have a market valuation of about US$ 53 billion, and if its employee stock options and other restricted shares are also included, then the company’s market valuation is expected to be about US$ 60 billion.
Last month, the company had filed an S-1 regulatory filing about its intention to go public.
Several companies have indicated an interest in buying Rivian’s shares, including Amazon, Global investment management firms T. Rowe Price Associates, Coatue Management, Franklin Templeton and others.
These companies hope to buy Class A common stock worth up to US$ 5 billion of shares.
As per a recent filing by Amazon, the e-commerce company already holds a 20 per cent stake in the start-up.
Also, Ford holds a 12 per cent stake in the company, as per reports.
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Bottom Line
The valuation is expected to make Rivian one of the largest EV start-ups, surpassing the market valuation of other EV start-ups and the recently listed EV companies such as Fisker, Lucid and others.
Its valuation is also expected to be just slightly less than major automakers such as Ford, General Motors, Stellantis NV and others.
The listing comes amid gaining momentum of EV adoption, as governments make a push for decarbonisation and for zero carbon-emitting vehicles.
According to a recent report from market research firm Allied Market Research, the global EV market’s valuation is projected to increase by 22.6 per cent on a CAGR basis, from US$ 162.34 billion in 2019 to about US$ 802.81 billion by 2027.
