Rivian looking to raise up to $8.4 billion in upcoming IPO

By Crystal Tse and Ed Ludlow | Bloomberg

Irvine-based Rivian Automotive, the electrical motortruck shaper backed by Amazon.com, plans to rise arsenic overmuch arsenic $8.4 cardinal successful an archetypal nationalist offering that could springiness it a worth of arsenic overmuch arsenic $53 billion.

Rivian said it plans to merchantability 135 cardinal shares for $57 to $62 each, according to its filing Monday with the U.S. Securities and Exchange Commission. At the apical of that range, Rivian would person a marketplace worth of $53 cardinal based connected the outstanding shares listed successful its filing. Accounting for worker banal options and restricted banal units, the company’s afloat diluted worth is adjacent to $60 billion.

That compares with a valuation of $27.6 cardinal aft a $2.65 cardinal backing circular successful January, Bloomberg News reported.

The listing would eclipse the June IPO by XPeng Inc. arsenic the largest ever for an EV shaper IPO. XPeng raised much than HK$16 cardinal ($2 billion) including alleged greenshoe shares successful its Hong Kong IPO. Electric-vehicle person Tesla Inc., with a existent marketplace worth of $1.2 trillion, raised $260 cardinal listing successful 2010.

Rivian has attracted cornerstone investors that indicated involvement for up to $5 cardinal of the IPO shares, its filing shows. The investors see 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.

Rivian was seeking to beryllium valued astatine astir $80 cardinal successful a listing, Bloomberg News reported successful August erstwhile the institution announced that it had filed confidentially for an IPO.

The company’s IPO plans travel arsenic electrical conveyance makers are scaling up, angling for a bigger portion of the increasing market. With $10.5 cardinal raised from backers including Amazon and Ford Motor Co., an established mill successful Illinois and thousands of preservation holders for its R1T motortruck and R1S athletics inferior vehicle, Rivian is among the astir superior competitors lining up to instrumentality connected Tesla.

Rivian had a nett nonaccomplishment of $994 cardinal successful the archetypal six months of 2021, compared with a $377 cardinal shortage a twelvemonth earlier, according to its filings.

In summation to Amazon, Rivian’s biggest investors see affiliates of T. Rowe Price, Global Oryx Co. and Manheim Investments, its filings show.

To assistance pull retail investors, Rivian plans to allocate a information of its IPO shares to SoFi Securities LLC’s online brokerage platform. Founder and Chief Executive Officer R.J. Scaringe is expected to support power implicit Rivian done a people of banal giving him 10 votes per share, compared with 1 ballot each for th shares sold successful the IPO.

The offering is being led by Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co. More than 20 banks are listed connected the screen leafage of its prospectus. Rivian plans for its shares to commercialized connected the Nasdaq Global Select Market nether the awesome RIVN.