Rivian Automotive Inc. valued its highly anticipated initial public offering at $ 78 per share, well above heightened expectations, and valued the electric vehicle maker at more than $ 77 billion on a fully diluted basis, according to a person familiar with the matter.
The company, which is backed by Amazon.com Inc., was expected to raise approximately $ 12 billion through the offer by selling more shares than originally planned. The amount of shares for sale was still fluctuating late Tuesday, said a person familiar with the matter, so that number could change.
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Rivian said Friday that it intends to sell shares at a price of $ 72 to $ 74 apiece, up from the initial target range of $ 57 to $ 62.
On its roadshow pitch in front of investors, Rivian’s bankers compared the company to electric vehicle giant Tesla Inc. Although Rivian is at a much earlier stage, making big losses and not generating any revenue until recently, investors have clearly been open-minded and attracted by the company’s growth potential.
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Prior to going public, Rivian put together a long list of so-called anchor investors who had expressed an interest in buying shares valued at $ 5 billion. Among those who said they would buy shares at IPO were Amazon and investment firms T. Rowe Price Group Inc., Coatue Management, and Franklin Templeton.
RJ Scaringe founded the company that would become Rivian in 2009, originally with a plan to build a sports car. The company shifted its focus to electric pickups and SUVs as this segment of the auto market gained popularity. The startup burned an incredible amount of money. From early 2020 through June, the company posted an operating loss of approximately $ 2 billion, according to a company filing. In its most recent quarter, it estimated a loss of between $ 745 million and $ 795 million, according to a company filing.
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Rivian has announced that it will launch three models by the end of the year. Among them is an electric delivery truck that was developed and built for Amazon. The e-dealer has an order for 100,000 of the trucks that Rivian says it plans to deliver by 2025.
The valuation of more than $ 77 billion is a multiple of what Rivian was worth less than a year ago: A fundraising round in January valued the company at $ 27.6 billion, the Wall Street Journal reported.
