Amazon-backed electric automotive startup Rivian is getting closer to the Initial Public Offering (IPO) and is targeting a listing valuation of over USD 50 billion. According to an amended prospectus filed, the company is targeting a market valuation of around USD 54.6 billion. The startup has plans to offer 135 million shares. The value of each share will be in the price band of USD 57 to USD 62. The shares of the company will come with an option for underwriters to purchase around 20.25 million additional shares. Considering the high end of the price band, the startup is likely to bring USD 9.6 billion in its market debut. This is assuming that underwriters would exercise that option.
However, there are chances of these numbers getting changed based on actual demand. Sources said that the California-based company is expected to go public as soon as next week. According to Rivian’s IPO prospectus filed last month, the company has plans to list on the Nasdaq under the ticker symbol RIVN. Earlier there were reports that the company would seek a valuation of above USD 60 billion. The valuation is likely to make the company the titan among a group of EV startups and recently public companies. Rivian has said that investors like Amazon and T. Rowe Price have hinted that they could buy up to USD 5 billion in shares.
This valuation would mean that the startup is slightly less than automotive giants like Ford. Interestingly, Ford is an investor in Rivian. The American car maker holds around 12 per cent stake in the startup. Retailer investors can also purchase a portion of its IPO shares through the online brokerage platform of SoFi. It must be noted that the startup is already expecting an order of 10,000 last-mile delivery vans from Amazon. The e-commerce giant is planning to have these vans on the road by 2022. It wants to increase the number to 100,000 by 2030.