Amazon-backed Rivian files for IPO, gears up for blockbuster yr-end flotation

Aug 27 (Reuters) – Electric car maker Rivian said it has confidentially submitted paperwork with regulators for an initial general public offering, location the phase for a blockbuster calendar year-conclusion marketplace debut as it seems to faucet into a pink-scorching IPO marketplace in the U.S.

Rivian, which counts Amazon.com Inc (AMZN.O), Soros Fund Administration and BlackRock (BLK.N) amongst its main buyers, will seek a valuation of about $70-80 billion at the time of its original community giving, two resources familiar with the make a difference advised Reuters on Friday.

At that valuation, Rivian would have a larger market place capitalization than Basic Motors Co (GM.N), the biggest U.S. automaker. But it would even now be dwarfed by Tesla Inc (TSLA.O), which features of a market place cap of almost $700 billion and is currently arranging to establish a pickup truck that would compete with Rivian’s individual variation.

Rivian’s stock sector flotation is anticipated to guide the calendar year-finish line-up for U.S. IPOs, which have so considerably raised a record haul of above $225 billion this 12 months, according to details from Dealogic.

A amount of higher-profile names, such as Chinese ride-hailing giant Didi World-wide (DIDI.N), South Korean e-commerce giant Coupang (788.F) and cryptocurrency exchange Coinbase World wide (COIN.O), have currently taken gain of record-breaking money markets action this 12 months and floated their shares on U.S. stock exchanges.

Many other major names are predicted to go public in the past quarter of the yr, together with the likes of chipmaker GlobalFoundries, restaurant software package supplier Toast and non-public fairness large TPG, amid some others.

Rivian did not supply any other specifics on its IPO ideas on Friday. It is anticipated to lift the veil off its funds for the initial time in a community submitting in the coming weeks.

The corporation is 1 of the most properly-funded startups in the United States. It raised $10.5 billion considering that the start off of 2019, which includes $2.5 billion in July in a spherical led by Amazon and Ford Motor Co (F.N). read through a lot more

RACE FOR SUPREMACY

Founded in 2009 as Mainstream Motors in 2009 by RJ Scaringe, the organization altered its identify to Rivian in 2011. “Rivian” is derived from “Indian River” in Florida, a area Scaringe frequented in a rowboat as a youth.

Rivian is on the lookout to begin generation of an electrical pick-up and an SUV this 12 months.

Rivian’s filing arrives as automakers are racing to produce electric powered vehicles(EVs) as China, Europe and other nations and regions mandate reduce carbon emissions.

In the United States, regular carmakers these types of as GM and Ford are retrofitting crops for EV manufacturing, while Tesla, Taiwanese agreement maker Foxconn (2317.TW) and many startups are expanding current crops or are setting up them.

Before this thirty day period, Reuters described that Rivian was in conversations to invest at least $5 billion in a new motor vehicle plant in the vicinity of Fort Worthy of, Texas. browse far more

Rivian is now pursuing a two-keep track of approach: building electric delivery vans for Amazon, when developing an electric pickup and SUV brand name aimed at affluent persons.

Amazon has ordered 100,000 of Rivian’s electrical delivery vans as part of the e-commerce giant’s broader hard work to lower its carbon footprint.

This calendar year, having said that, has not been devoid of troubles for Rivian, as CEO Scaringe in July informed consumers the pandemic experienced delayed the start of its cars. study extra

Aside from Rivian, a slew of rapidly-expanding EV startups have taken benefit of the cash markets growth in the previous 12 months, primarily with the rise of particular objective acquisition businesses (SPACs).

The likes of Lucid Motors, Nikola Corp (NKLA.O), Fisker Inc (FSR.N) and Lordstown Motors Corp (Experience.O), have all picked out to merge with blank look at companies to go general public.

Reporting by Anirban Sen, Noor Zainab Hussain, Niket Nishant and Subrat Patnaik in Bengaluru and Ben Klayman in Detroit Modifying by Saumyadeb Chakrabarty and Edward Tobin

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