Rivian, an Amazon-backed electric vehicle company, is nearing its initial public offering (IPO) and is targeting a valuation of more than $50 billion. The company is targeting a market valuation of about $54.6 billion, according to an updated prospectus filed. The company intends to issue 135 million shares. The value of each share will be between 57 USD and 62 USD. The company’s shares will include an option for underwriters to acquire up to an additional 20.25 million shares. Considering the higher end of the price range, the company is expected to pull in $9.6 billion when it first launches in the market. This assumes that subscribers will use this option.
However, these figures are subject to change depending on actual demand. According to sources, the California-based company could go public as soon as next week. Rivian intends to list on Nasdaq under the ticker symbol RIVN, according to its IPO prospectus filed last month. Earlier, it was reported that the company would seek a valuation of over $60 billion. The value is expected to elevate the company to titanic status among EV startups and newly public companies. According to Rivian, investors such as Amazon and T. Rowe Price have expressed interest in acquiring up to $5 billion in stock.
This estimate implies that the company is worth slightly less than automotive giants such as Ford. Interestingly, Ford is a shareholder of Rivian. The American automaker owns around 12% of the company. Retailers can also acquire a percentage of its IPO shares through SoFi’s online trading platform. It’s worth mentioning that the company is already anticipating an order from Amazon for 10,000 last-mile delivery trucks. The e-commerce giant intends to have these vehicles on the road by 2022. It plans to increase this figure to 100,000 by 2030.