By
Steve Muchoki
April 19th, 2024
Rivian is going public on the Nasdaq with the symbol “RIVN,” according to a filing with the US Securities and Exchange Commission (SEC).
EV maker Rivian has increased its expected offer price for its shares, now aiming for a $65 billion valuation in its initial public offering (IPO). Generally, the EV market is booming with increased demand for luxurious brands. Last quarter, US EV giant Tesla Inc (NASDAQ: TSLA) produced a record number of cars, further signifying the increasing demand for EVs as the market flourishes.
Rivian Boosts IPO Expectations
Formerly, Rivian said it was targeting over a $53 billion valuation in its IPO. Last week, Rivian also said it would be offering its shares at $62 each during the IPO. As the EV maker raises its target, the company is now expecting to sell 135 million shares within the range of $72-$75 per share.
Rivian upped its expectations after Wall Street’s big IPO investors bet on the EV company to be the next big player in the industry. If the IPO goes as expected, Rivian could become one of the only three companies that have generated over $8 billion in the last 10 years. In a decade, e-commerce companies Alibaba Holdings Inc (NYSE: BABA) and Facebook Inc (NASDAQ: FB), now Meta Platforms Inc were the only two companies that raised more than $8 billion in their IPOs.
In addition, a $65 billion valuation for Rivian could push the company to become more valuable than Stellantis N.V. Also, Rivian could move closer to Ford (NYSE: F) and General Motors (NYSE: GM) with such a huge market valuation.
The EV automaker launched its all-electric pickup truck, R1T, in September and now has thousands of preorders. As of the 31st of October, the company had around 55,400 R1T and R1S preorders in the US and Canada. Already, Rivian has begun deliveries of the R1T. Amazon.com Inc (NASDAQ: AMZN) has also ordered 100,000 Rivian EV vans.
As competition continues among automakers, General Motors is preparing to produce electric delivery vans, pickup trucks, and SUVs. On the other hand, Ford revealed that he currently has over 160,000 orders for its F-150 Lightning electric pickup truck. The carmaker added that it has sold out the electric version of its Transit commercial van.
Rivian’s IPO Details
Rivian is going public on the Nasdaq with the symbol “RIVN,” according to a filing with the US Securities and Exchange Commission (SEC). The lead underwriters of the offering are Morgan Stanley (NYSE: MS), Goldman Sachs (NYSE: GS), and JPMorgan (NYSE: JPM).
“As we redefined our strategy, we focused on how to maximize impact…We wanted to establish our brand by delivering a combination of efficiency, on-road performance, off-road capability, functional utility, and product refinement that simply didn’t exist in the market. Our first vehicles would need to establish Rivian as the brand for active lifestyles and ensure the brand could transcend segments, form factor, use cases, culture, and geographies,” said CEO Robert J. Scaringe in the IPO filing.