Tuesday, November 02, 2021
IPO brings billions
Electric car maker Rivian sets share price
In the US auto market, the large pickups are traditionally the most popular vehicle category. After the start of production of its R1T, electric car maker Rivian now also wants to go public. With the set share price, the company beckons an injection of billions in cash.
In the US, the electric car maker Rivian could go public next week and reach a value of more than 50 billion dollars (43 billion euros). The California startup was founded in 2009 and has since received more than ten billion dollars from investors – including from Amazon. According to Rivian, the online giant has promised to buy 100,000 electric delivery vans.
Rivian set a price range for the stock of $ 57 to $ 62 on Monday, according to filings with the Securities and Exchange Commission. The startup plans to offer 135 million shares, or 155.25 million if there is great demand. With that, Rivian can raise up to $ 9.6 billion and have a valuation between $ 50.3 billion and $ 54.7 billion. According to the US media, the IPO could take place next week.
Amazon announced on Friday that it owns around 20 percent of Rivian. The first pick-ups called R1T rolled off the assembly line at the automaker in September. SUVs for private customers starting at a price of around 70,000 dollars are to follow in December. The startup made a loss of around $ 1 billion in 2020.
In the US automobile market, the large pickups are traditionally the most popular and lucrative vehicle category – and manufacturers are currently positioning themselves for a new competition for this business with electric models. Ford has already presented a battery version of its bestseller F-150, GM plans to present an electric Chevrolet Silverado as a competing offer in January.
Rivian should also give the development at Tesla a boost. The US electric car manufacturer had cracked the market value of one trillion dollars after the announcement of a huge order from the car rental company Hertz. According to Tesla, Hertz wants to buy 100,000 Tesla cars by the end of next year.