Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Amazon-backed Rivian files for IPO, gears up for blockbuster year-end flotation

EconomyAug 27, 2021 01:11PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The logo for electric vehicle startup Rivian is seen on the hood of its new R1T all-electric truck in Mill Valley, California, U.S., January 25, 2020. REUTERS/Nathan Frandino/File Photo

By Anirban Sen, Ben Klayman and Noor Zainab Hussain

(Reuters) -Electric vehicle maker Rivian said it has confidentially filed paperwork with regulators for an initial public offering, setting the stage for a blockbuster year-end market debut as it looks to tap into a red-hot IPO market in the U.S.

Rivian, which counts Amazon.com Inc (NASDAQ:AMZN), Soros Fund Management and BlackRock (NYSE:BLK) among its major investors, will seek a valuation of around $70-80 billion at the time of its initial public offering, two sources familiar with the matter told Reuters on Friday.

At that valuation, Rivian would have a bigger market capitalization than General Motors Co (NYSE:GM), the largest U.S. automaker. But it would still be dwarfed by Tesla (NASDAQ:TSLA) Inc, which boasts of a market cap of nearly $700 billion and is currently planning to build a pickup truck that would compete with Rivian's own version.

Rivian's stock market flotation is expected to lead the year-end line-up for U.S. IPOs, which have so far raised a record haul of over $225 billion this year, according to data from Dealogic.

A number of high-profile names, including Chinese ride-hailing giant Didi Global, South Korean e-commerce giant Coupang and cryptocurrency exchange Coinbase (NASDAQ:COIN) Global, have already taken advantage of record-breaking capital markets activity this year and floated their shares on U.S. stock exchanges.

Several other big names are expected to go public in the last quarter of the year, including the likes of chipmaker GlobalFoundries, restaurant software provider Toast and private equity giant TPG, among others.

Rivian did not provide any other details on its IPO plans on Friday. It is expected to lift the veil off its finances for the first time in a public filing in the coming weeks.

The company is one of the most well-funded startups in the United States. It raised $10.5 billion since the start of 2019, including $2.5 billion in July in a round led by Amazon and Ford Motor (NYSE:F) Co.

RACE FOR SUPREMACY

Founded in 2009 as Mainstream Motors in 2009 by RJ Scaringe, the company changed its name to Rivian in 2011. “Rivian” is derived from "Indian River" in Florida, a place Scaringe frequented in a rowboat as a youth.

Rivian is looking to start production of an electric pick-up and an SUV this year.

Rivian's filing comes as automakers are racing to develop electric vehicles (EVs) as China, Europe and other countries and regions mandate lower carbon emissions.

In the United States, traditional carmakers such as GM and Ford are retrofitting plants for EV production, while Tesla, Taiwanese contract manufacturer Foxconn and several startups are expanding existing plants or are building them.

Earlier this month, Reuters reported that Rivian was in discussions to invest at least $5 billion in a new vehicle plant near Fort Worth, Texas.

Rivian is currently pursuing a two-track strategy: building electric delivery vans for Amazon, while developing an electric pickup and SUV brand aimed at affluent individuals.

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.

This year, however, has not been without challenges for Rivian, as CEO Scaringe in July told customers the pandemic had delayed the launch of its vehicles.

Apart from Rivian, a slew of fast-growing EV startups have taken advantage of the capital markets boom in the past 12 months, especially with the rise of special purpose acquisition companies (SPACs).

The likes of Lucid Motors, Nikola Corp, Fisker Inc and Lordstown Motors Corp, have all chosen to merge with blank check firms to go public.

Amazon-backed Rivian files for IPO, gears up for blockbuster year-end flotation
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Barak David
Barak David Aug 27, 2021 2:59PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
LOL another company that haven't delivered a single car goes to IPO at 80 BILLION !! $
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email