Rivian will conduct an IPO for 60 billion USD

Electric car manufacturer Rivian Automotive is preparing for an IPO - an initial public offering on the stock exchange. The company plans to extract at least $54,6 billion from this, and in the best case scenario, the amount will reach $60 billion. The organization plans to sell 135 million shares at a cost of $57 to $62 each, with an option for underwriters to purchase 20,25 million additional shares. Quite a bold move, given that in the first half of 2021 the company suffered a net loss of USD 994 million, which is almost 3 times more than in the whole of 2020.




According to official statements in the media, Rivian will be listed on the New York Nasdaq Exchange in a week. Its shares will trade under the ticker RIVN. Although the securities are not yet for sale, many large investors such as T. Rowe Price and Amazon have shown great interest and are ready to purchase shares for a total amount of at least US$5 billion. Also, part of the shares will be offered to retail investors through the SoFi brokerage platform.

In January 2021, an investment round was held. According to its results, the manufacturer of electric cars received a valuation of approximately 27,6 billion US dollars. If the company really manages to attract the planned USD 60 billion, in terms of capitalization it will take a place almost exactly in the middle between the popular car manufacturers Honda and Ford.

One of the motives for Rivian Automotive's IPO is the desire to invest significant amounts in the development of production. The company places particular emphasis on the all-electric R1T pickup truck, the first copies of which rolled off the assembly line in September. In 2019, the firm received $700 million and $500 million in funding from Amazon and Ford, respectively. Most recently, the manufacturer raised about 2,65 billion USD from T. Rowe Price and the Amazon Climate Pledge Fund. Amazon also announced the purchase of 100 delivery vans. They will be manufactured by Rivian Automotive. These machines are already operating in the delivery industry in some US states.



Rivian has been making cars since 2009. Initially, its profile was sports cars, but gradually the manufacturer radically changed the vector towards electric pickups and SUVs. The first electric cars have already reached their customers in the summer of 2021, and the company has bailed out some profits. Now she is taking a really serious step - an IPO.