Amazon.com Inc.-backed Rivian Automotive significantly increased the expected offering price of its shares on Friday, with the electric vehicle maker targeting a $65 billion valuation in its initial public offering.
The company, which last month disclosed losses of about $1 billion in the first half of this year, said it would sell 135 million shares at a price range between $72 and $74 and raise about $10 billion.
The new price band is much higher than the $57-$62 range announced earlier this month and follows a successful investor roadshow this week, as Wall Street’s big IPO investors rallied on Rivian to become the next big player in the Tesla-dominated sector. Bet has been placed.
While the startup hasn’t sold any significant amounts of its electric vans or trucks yet, a $65 billion valuation for Rivian could bring it closer to traditional auto makers Ford, but still smaller than General Motors.
The IPO could be the biggest in the past decade after Alibaba and Facebook.
Rivian, which has been investing aggressively to ramp up production, including its upscale all-electric R1T pickup truck, which launched in September, competes with more established rivals such as Tesla Inc., General Motors and Ford. was beating.
The company had approximately 55,400 R1T and R1S pre-orders in the United States and Canada, each with a $1,000 non-cancellable and refundable deposit as of October 31.
Amazon has ordered 100,000 of Rivian’s electric delivery vans as part of a broader effort to cut the e-commerce giant’s carbon footprint.
However, the Rivian will face competition from automakers in both the consumer and commercial van markets.
Ford said it has more than 160,000 orders for its F-150 Lightning electric pickup truck and an electric version of its Transit commercial van “is completely sold out.”
General Motors is starting production of electric delivery vans, SUVs and pickup trucks.
Morgan Stanley, Goldman Sachs and JP Morgan are the principal underwriters. Rivian will be listed on the Nasdaq under the symbol “RIVN”.
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