Electric-Vehicle Startup Rivian Seeks To Raise $8.4 Bln In IPO

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Rivian Automotive Inc., the electric van and truck maker backed by Amazon.com (AMZN) and Ford (F), is seeking to go public via an initial public offering that could give it a market value of as much as $53 billion.

The company looks to raise up to $8.4 billion in the IPO, which could make it one of the biggest IPOs in history. Amazon and Ford Motor currently hold nearly 20% and 5% stakes in the company, respectively.

In a filing with the U.S. Securities and Exchange Commission, the company revealed that it plans to sell 135 million shares for $57 to $62 each. If the company can price the IPO at the top of the range, it would be valued at $53 billion based on the outstanding shares listed in its filing.

The company plans to list its common stock on the Nasdaq Global Select Market under the symbol "RIVN." The company has selected Goldman Sachs, JPMorgan and Morgan Stanley as underwriters for its IPO.

Irvine, California-based Rivian was founded in 2009. It has raised nearly $10.5 billion since 2019. In February 2019, Amazon announced it would be leading an investment round of $700 million into Rivian. The round included participation from existing shareholders as well. In April 2019, Ford invested $500 million. Last month, Amazon revealed that it has a 20% stake in the electric vehicle manufacturer.

In September 2019, Amazon also ordered 100,000 electric delivery vans from Rivian as part of its plan to convert its delivery fleet to 100% renewable energy by 2030.

Recently, Rivian announced that it is going to invest $5 billion in a Texas project to make its second manufacturing plant. The factory will churn out 200,000 vehicles per year and the plant promises to create as many as 7,500 jobs by the end of 2027 with an average annual salary of $56,000.

In September, Rivian also launched its first R1T pickup for a customer. As of October 31, Rivian had produced 180 R1Ts and delivered 156 of them, according to the filing. The company plans to manufacture about 1,200 R1T and 25 R1S vehicles and deliver approximately 1,000 R1T and 15 R1S vehicles by the year-end.

Rivian reported a net loss of $994 million in the first six months of 2021, compared to a loss of $377 million last year, according to the filings.

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