It had earlier this week aimed for a valuation of more than
$53 billion at a price of $62 per share. The company now expects to sell 135
million shares in the range of $72-$74 apiece to raise nearly $10 billion on
November 9.
The increased price band follows a successful investor
roadshow this week, as Wall Street's big IPO investors bet on Rivian to be the
next big player in a sector dominated by Tesla.
The IPO could make Rivian one of the only three companies
that have raised more than $8 billion in a decade after Alibaba and Facebook.
While the startup has yet to sell any significant volume of
its electric vans or trucks, a $65 billion valuation for Rivian could make it
more valuable than Fiat maker Stellantis NV and bring it closer to legacy
automakers Ford and General Motors.
Rivian has been investing heavily to ramp up production,
including for its upscale all-electric R1T pickup truck which was launched in
September, beating out competition from established rivals such as Tesla,
General Motors, and Ford.
The company had about 55,400 R1T and R1S preorders in the
United States and Canada, as of October 31.
Rivian said it had started deliveries of the R1T and had
recorded revenue for the three months ended September 30. Net loss for that
period, however, is estimated to increase due to higher production costs.
The EV market is booming as consumers are more environment
conscious and is seen as a symbol of luxury for many brands. Tesla produced a
record number of cars in its latest quarter, suggesting strong demand for
electric cars.
Amazon has ordered 100,000 of Rivian's electric delivery
vans as part of the e-commerce giant's broader effort to cut its carbon
footprint.
Rivian will, however, face competition from automakers in
both the consumer and commercial van markets.
Ford said it has more than 160,000 orders for its F-150
Lightning electric pickup truck and that an electric version of its Transit
commercial van is "completely sold out."
General Motors is gearing up production of electric delivery
vans, SUVs and pickup trucks.
Morgan Stanley, Goldman Sachs, and JP Morgan are the lead
underwriters. Rivian will list on the Nasdaq under the symbol "RIVN".
The valuation includes shares that underwriters could exercise under the
"greenshoe" option. © Reuters
0 comments:
Post a Comment