- Amazon-backed Rivian is targeting a valuation above $60 billion in its upcoming IPO.
- The electric-vehicle startup aims to raise as much as $9.6 billion in its market debut next week.
- Rivian plans to trade on the Nasdaq under the ticker symbol "RIVN."
Rivian, an electric-vehicle startup backed by Amazon, is targeting a market valuation as high as $60 billion when it makes its US market debut next week.
The Irvine, California-based company plans to offer 135 million of its Class A shares priced between $57 and $62 per share, it said in an SEC filing Monday. At the top end of that range, Rivian could raise $8.4 billion from the offering, putting it among the biggest US initial public offerings by funds raised.
If underwriters exercise their option to purchase up to 20.25 million additional shares within a 30-day window, the EV maker could raise a total of $9.6 billion.
At the midpoint of the share price range, Rivian's market capitalization comes to about $54.6 billion. This would be more than double its last private valuation of $27.6 billion.
Rivian could score a market valuation of more than $60 billion on a fully diluted basis, based on the number of shares outstanding and other restricted stock. The EV maker is seeking that figure, CNBC reported Monday, citing sources.
Still, the IPO total will depend on actual investor demand and market conditions before the company's trading debut.
At a $60 billion valuation, Rivian could be worth more than other carmakers like Honda, Kia, and Nissan, which are valued at about $54 billion, $29 billion, and $20 billion, respectively. Its target is also much higher than the roughly $2 billion valuation Tesla got in its 2010 IPO.
Expected to go public next week, Rivian will trade on the Nasdaq under the ticker symbol "RIVN."
Rivian said it expects to offer a small portion, or 0.5%, of its shares to retail investors through online brokerage SoFi. Bloomberg reported this would be the first IPO to be offered on the Chamath Palihapitiya-backed fintech.
The company expects to produce about 1,200 R1Ts and 25 R1Ss of its electric pickup trucks, and deliver about 1,000 R1Ts and 15 R1Ss by the end of 2021.
Having raised $11 billion so far, Rivian has fetched more money than any of its rivals. It's also landed an investment and a 100,000 delivery-van order from Amazon, which last week disclosed a 20% stake in the EV-maker.
If Rivian manages to score a $60 billion valuation, this implies a huge profit for Amazon. The e-commerce giant's stake would be worth $8.8 billion at the proposed IPO price, based on its $1.34 billion investment.
Morgan Stanley, JPMorgan, and Goldman Sachs are the leading underwriters for Rivian's offering.