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RivianAn electric truck maker, backed by Amazon and Ford Motor, is aiming to raise over $50 billion in its IPO next week.
The company updated its registration documents with the Securities and Exchange Commission on Monday and said it aims to sell 135 million Class A common stock, priced between $57 and $62 per share, to $8.4 billion.
Rivian is one of many start-ups hoping to get a share of the anticipated electric vehicle market. grow exponentially for the next two decades. The company is following Tesla, which is a leader in its field. Tesla recently surpassed $1 trillion, and it made its first full-year profit last year.
Amazon has invested over $1.8 billion in Rivian and announced its holdings last week. 20 percent share in the company. Amazon, which has set up its own delivery operation, has a contract to purchase 100,000 delivery vehicles from Rivian.
Founded in 2009, Rivian manufactures a luxury pickup truck and a sports utility vehicle, both designed for off-road use. “Keep the world adventurous forever,” the company says in its IPO filing.
At $62 per share, Rivian could be valued as high as $61 billion if the extra shares that could be issued are counted. These include additional shares that can be issued in the offer if there is demand, and some underlying employee share compensation, said Matthew Kennedy, a senior public offering market strategist at Renaissance Capital.
Rivian first released its documents for an IPO in August. Then it targets a valuation of approximately $70 billion. owned by Rivian lost $2 billion highlights the costs and risks of developing electric vehicles since the beginning of last year. It expects to spend approximately $8 billion on facilities and equipment by the end of 2023.
Peter Eavis contributing reporting.
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