Nov 1 (Reuters) – Rivian Automotive Inc, which is backed by Amazon.com Inc (AMZN.O), is targeting a valuation of more than $53 billion for its U.S. debut, making the electric vehicle manufacturer potentially almost as valuable as rival Honda Motor (7267.T).
The startup is looking to raise up to $8.4 billion, setting it up to be the third-largest initial public offering (IPO) by funds raised in the past decade in the United States.
Alibaba (9988.HK) raised a record $25 billion in 2014, Meta Platforms Inc (FB.O) garnered $16 billion in 2012, while Uber (UBER.N) made $8.1 billion in 2019.
While Rivian has yet to sell any significant volume of its electric vans or trucks, it could likely be valued higher than Ferrari (RACE.MI), although less than Honda, General Motors (GM.N) or its backer Ford Motor Co (F.N).
The startup has been investing heavily to ramp up production, including for its upscale all-electric R1T pickup truck, which was launched in September, beating out competition from established rivals such as Tesla, General Motors and Ford.
It is currently pursuing a two-track strategy: building electric delivery vans for Amazon and developing an electric pickup and SUV brand aimed at affluent individuals.
Ford holds a more than 5% share in the EV startup, according to a filing with the U.S. Securities and Exchange Commission.
Rivian, which confidentially filed paperwork for an IPO in August, will, however, face tough competition from automakers in both the consumer and commercial van markets.
General Motors is gearing up production of electric delivery vans, SUVs and pickup trucks.
Morgan Stanley, Goldman Sachs and J.P. Morgan are the lead underwriters. Rivian will list on the Nasdaq under the symbol “RIVN”.