Rivian R1T
Courtesy Rivian
Rivian, the all-electric truck maker, set terms for its much anticipated IPO Monday.
The Irvine, California company is offering 135 million shares at $57 to $62 each, a prospectus said. Rivian plans to trade under the Nasdaq ticker RIVN.
Its prospectus lists 22 investment banks that are working on the IPO. Morgan Stanley, Goldman Sachs and JP Morgan are lead bookrunners on the deal.
Rivian is seeking a roughly $60 billion valuation, The Wall Street Journal reported Monday. At $62 a share, Rivian’s valuation is currently $53.4 billion. That number is expected to change based on demand from investors before the company lists, CNBC said. Amazon.com
(ticker: AMZN), T. Rowe Price (TROW), Franklin Templeton , Capital Research Global Investors, D1 Capital Partners, Third Point, Blackstone Group (BX), and Soros Fund Management have indicated an interest in buying $5 billion worth of stock, the prospectus said.
At $53.4 billion, Rivian’s market capitalization is roughly equal to Honda Motor Corp (HMC) which ended Monday with a $52.4 billion valuation. Ford
(F), an investor in Rivian, is valued at $71.4 billion.
The Rivian IPO is scheduled to price on Tuesday, Nov. 9 and trade the next day, a person familiar with the situation said. Rivian has made a tiny chunk, 0.05%, of its shares available to retail investors via SoFi’s online brokerage platform.
Founded in 2009, Rivian makes all-electric pickup trucks and SUVs; it employs more than 7,500 people. The Irvine, Calif. company is considered one of the more serious rivals to Tesla (ticker: TSLA), the leading EV manufacturer. Rivian is reportedly producing up to 100,000 electric delivery trucks for Amazon (AMZN).
Rivian began delivering R1T, its first production vehicle, in September and has generated “minimal revenue,” the prospectus said. Losses widened to $1 billion for the year ended Dec. 31 versus $426 million in losses in 2019. For the six months ended June 30, losses more than doubled to $994 million compared with $377 million in losses for the same period in 2020.
Rivian has raised $10.5 billion in funding since 2019. This includes a $2.5 billion round in July that was led by investors including Amazon’s Climate Pledge Fund, Ford (F), as well as investment firms D1 Capital Partners and T. Rowe Price Associates. Amazon would have the biggest stake, 17.3% of voting power, after the IPO. At $62, its holding is valued at $10 billion. Ford would have 11.1%; its stake is valued at $6.4 billion.
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