Rivian aiming for NZ$91.4b valuation

Rivian Automotive – in which Amazon has a 20% stake – is seeking US$65 billion (NZ$91.4b) in its initial public offering (IPO) and looks likely to exceed it.

That comes after a successful investor roadshow with IPO investors betting big on Rivian which could put it up with the likes of General Motors and Ford, the latter two preparing for extensive e-van and e-ute production as well.

Rivian says it has begun deliveries of its R1T ute (pickup truck) and will ramp up production after getting about 55,400 R1T and R1S SUV pre-orders in the US and Canada, its ute also expected to eventually come to Australia and New Zealand.

Amazon earlier ordered 100,000 Rivian e-vans – the automotive manufacturer’s three EVs seen in New Zealand earlier this year for winter testing while it has also applied to trademark six EV names.

Rivian is offering 135 million shares for US$72 to US$74 each in its listing, which could be the seventh biggest US IPO on record, Bloomberg reports.

If the stock prices above the top marketed price of US$74 per share, the company would raise more than US$10 billion and exceed a fully diluted valuation of more than US$70b, it adds.

The offering is being led by Morgan Stanley, Goldman Sachs Group, and JPMorgan Chase & Co., with more than 20 banks listed on the cover page of its prospectus. Rivian shares are expected to begin trading November 10 on the Nasdaq Global Select Market under the symbol RIVN.

Rivian is reported as only likely to produce about 1200 units by the end of 2021 at its Normal plant in Illinois, with the company expecting annual production will get to 150,000 vehicles by late 2023.

Its R1T ute starts at US$67,500 for the most basic model, while its SUV is US$70,000, deliveries of the ute having started in September.

Rivian is said to be the first automotive manufacturer to bring a battery electric ute (pickup) to market in the US.

Competition is expected to come from Ford’s F-150 Lightning which goes on sale next year while General Motors has its first electric GMC Hummer ute and SUV ready now with first edition reservations full and EV3X, EV2X and EV2 variations due around September 2022, mid-2023 and mid-2024 respectively.

GM plans to debut an EV version of its Silverado ute at the CES 2022 event in Las Vegas, January 5-8.

Tesla has its Cybertruck coming later next year from its new plant in Austin, Texas.

Rivian’s rally might even beat EV manufacturer Lucid, worth about US$74b, some reports suggest.

IPO proceeds are likely to see Rivian use the money for working capital, to fund growth, and for other general corporate purposes including increased hiring and stepping up the volume of materials from its supply chain to meet demand.

It’s also expected to build a second US factory – possibly in Fort Worth, Texas – and is considering a factory in Europe.