Rivian is an electric vehicle company that may have slid under your radar, but the company is making waves today with the announcement of its upcoming IPO. Rivian recently closed a $2.5 billion financing round last month that was led by Ford, Amazon, and T. Rowe Price, which brings the amount raised since 2019 to $10.5 billion.
The amount of shares to be issued and the price range have not yet been disclosed as today's IPO form filed is confidential, but there are reports that Rivian will be seeking a valuation somewhere in the $70-80 billion market cap range. Bloomberg has reported that JPMorgan, Morgan Stanley, and Goldman Sachs have been selected as underwriters for the IPO.
Amazon owns a piece of Rivian and has plans to deploy 10,000 electric delivery vans next year and aims to have 100,000 of them on the roads by 2030. There seems to be actual demand for Rivian's product line as opposed to more dubious EV IPOs like Nikola. Amazon began testing Rivian's electric delivery vans earlier this year in Los Angeles and San Francisco.
Rivian has an electric vehicle assembly plant located in Normal, Illinois, and they are rumored to be looking to expand to a second factory in the near term. The upcoming IPO will definitely help the company accumulate more funding for their continued expansion plans. The rumored $70-80 billion valuation may seem pretty high for many onlookers, but Wall Street's electric vehicle darling Tesla is currently valued over $700 billion. Then again, Tesla has been shipping cars for years, and Rivian is still a startup.
Only time will tell if Rivian's stock will be worth buying, but the company has the backing of big players like Amazon and Ford, so it is definitely worth keeping an eye on leading up to the IPO date.
This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.