Rivian, an electric truck maker backed by Amazon and Ford Motor, is aiming for a value of more than $50 billion in its first public offering next week.
The company on Monday updated its filings with the Securities and Exchange Commission to say it aims to sell 135 million Class A common stock priced between $57 and $62 per share, raising it to $8.4 billion. .
Rivian is one of several start-ups hoping to gain market share in the electric vehicle market, which is expected to grow exponentially over the next two decades. The company is chasing Tesla, the leader in the field. Tesla recently hit $1 trillion and made its first full-year profit last year.
Amazon has invested more than $1.8 billion in Rivian and announced last week that it had a 20 percent stake in the company. Amazon, which is building its own delivery company, has a contract to buy 100,000 delivery vehicles from Rivian.
Founded in 2009, Rivian makes a luxury pickup and a sport-utility vehicle, both designed for off-road driving. “Keep the world adventurous forever,” the company states in its IPO filing.
At $62 a share, Rivian could be worth up to $61 billion if you factor in the additional shares that could be issued. These include the additional shares that can be issued in the offering, if there is a demand for them, and some of the shares underlying employee stock compensation, said Matthew Kennedy, a senior IPO market strategist at Renaissance Capital.
Rivian first published his papers to go public in August and then aimed for a valuation of about $70 billion. Rivian has lost $2 billion since early last year, underscoring the costs and risks of developing electric vehicles. It expects to spend about $8 billion on facilities and equipment through the end of 2023.
Peter Eavis reporting contributed.