(Bloomberg) — Electric truck-maker Rivian Automotive Inc. is guiding potential investors that its initial public offering is likely to price above the top of its marketed range, according to people with knowledge of the matter.
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Rivian is offering 135 million shares for $72 to $74 each in its listing, which could be the seventh biggest U.S. IPO on record. If the stock prices above the top marketed price of $74 per share, the company would raise more than $10 billion and exceed a fully diluted valuation of more than $70 billion.
That compares with a valuation of $27.6 billion after a $2.65 billion funding round in January, Bloomberg News reported.
No final decision has been made, and details may still change. A representative for Rivian declined to comment.
As much as $5 billion of the IPO shares are set to be bought by investors including Amazon.com Inc., T. Rowe Price, Coatue Management, Franklin Templeton, Capital Research Global Investors, D1 Capital, Third Point Investors, Blackstone Inc., Dragoneer Investment Group and Soros Funds.
In addition to Amazon, Rivian’s biggest investors include affiliates of T. Rowe Price, Global Oryx Co. and Manheim Investments, its filings show.
Rivian had a net loss of $994 million in the first six months of 2021, compared with a $377 million deficit a year earlier, according to its filings. Rivian expected to record a quarterly net loss of as much as $1.28 billion due to costs associated with the start of production of the R1T.
Rivian plans to allocate up to 7% of its shares to eligible U.S. customers who had pre-orders as of Sept. 30. To attract retail investors, up to 0.4% of the IPO shares will be allocated to SoFi Securities LLC’s online brokerage platform. Founder and Chief Executive Officer R.J. Scaringe is expected to maintain outsize influence over Rivian through a class of stock giving him 10 votes per share, compared with one vote each for the shares sold in the IPO.
The offering is being led by Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co., with more than 20 banks listed on the cover page of its prospectus. Rivian shares are expected to begin trading Wednesday on the Nasdaq Global Select Market under the symbol RIVN.
(Updates with additional details from fifth paragraph.)
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