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HomeTechAmazon-Backed EV Maker Rivian Information for IPO

Amazon-Backed EV Maker Rivian Information for IPO

Electrical automobile maker Rivian mentioned it has confidentially filed paperwork with regulators for an preliminary public providing, setting the stage for a blockbuster year-end market debut because it appears to faucet right into a red-hot market within the US.

Rivian, which counts, Soros Fund Administration and amongst its main traders, will search a valuation of round $70-80 billion (roughly Rs. 5,14,477 crores to Rs. 5,87,974 crores) on the time of its preliminary public providing, two sources conversant in the matter informed Reuters on Friday.

At that valuation, Rivian would have a much bigger market capitalisation than Common Motors, the most important US automaker. However it will nonetheless be dwarfed by Tesla which boasts of a market cap of almost $700 billion (roughly Rs. 51,44,776 crores ) and is presently planning to construct a pickup truck that will compete with Rivian’s personal model.

Rivian’s inventory market flotation is predicted to steer the year-end line-up for the US. IPOs, which have up to now raised a report haul of over $225 billion (roughly Rs. 16,53,678 crores) this yr, in line with information from Dealogic.

A variety of high-profile names, together with Chinese language ride-hailing large Didi World, South Korean e-commerce large Coupang and cryptocurrency trade Coinbase World, have already taken benefit of record-breaking capital markets exercise this yr and floated their shares on US inventory exchanges.

A number of different massive names are anticipated to go public within the final quarter of the yr, together with the likes of chipmaker GlobalFoundries, restaurant software program supplier Toast and personal fairness large TPG, amongst others.

Rivian didn’t present every other particulars on its IPO plans on Friday. It’s anticipated to raise the veil off its funds for the primary time in a public submitting within the coming weeks.

The corporate is likely one of the most well-funded startups in the USA. It raised $10.5 billion (roughly Rs. 77,171 crores ) for the reason that begin of 2019, together with $2.5 billion (roughly Rs. 18,374 crores) in July in a spherical led by and Ford Motor.


Based in 2009 as Mainstream Motors in 2009 by RJ Scaringe, the corporate modified its identify to Rivian in 2011. “Rivian” is derived from “Indian River” in Florida, a spot Scaringe frequented in a rowboat as a youth.

Rivian is seeking to begin manufacturing of an electrical pick-up and an SUV this yr.

Rivian’s submitting comes as automakers are racing to develop electrical automobiles (EVs) as , Europe and different international locations and areas mandate decrease carbon emissions.

In the USA, conventional carmakers reminiscent of GM and are retrofitting crops for EV manufacturing, whereas Tesla, Taiwanese contract producer and a number of other startups are increasing present crops or are constructing them.

Earlier this month, Reuters reported that Rivian was in discussions to take a position not less than $5 billion (roughly Rs. 36,748 crores) in a brand new automobile plant close to Fort Value, Texas.

Rivian is presently pursuing a two-track technique: constructing electrical supply vans for Amazon, whereas creating an electrical pickup and SUV model aimed toward prosperous people.

Amazon has ordered 100,000 of Rivian’s electrical supply vans as a part of the e-commerce large’s broader effort to chop its carbon footprint.

This yr, nevertheless, has not been with out challenges for Rivian, as CEO Scaringe in July informed clients the pandemic had delayed the launch of its automobiles.

Aside from Rivian, a slew of fast-growing EV startups have taken benefit of the capital markets increase up to now 12 months, particularly with the rise of particular objective acquisition corporations (SPACs).

The likes of Lucid Motors, Nikola, Fisker, and Lordstown Motors have all chosen to merge with clean test companies to go public.

© Thomson Reuters 2021



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