Bangalore: rivian Automotive Inc.,
Which is supported by Amazon.com Inc., is targeting a valuation of more than $53 billion for its US debut, making the electric vehicle maker potentially nearly as valuable as rival Honda Motor Co.

The EV startup is looking to raise up to $8.4 billion, establishing it as the third-largest initial public offering in the US by funds raised in the past decade. Only three other firms have raised more than $8 billion while going public since 2011, Dealogic data shows. Alibaba Group Holding Ltd raised a record $25 billion in 2014, Meta Platforms Inc. made $16 billion in 2012, while Uber Technologies Inc. earned $8.1 billion in 2019.

Since last year, companies in the EV sector have emerged as some of the most under-invested, particularly among SPAC investors who are looking to the next year. Tesla Inc.

While the Rivian has not yet sold a significant amount of its electric vans or trucks, it may cost more than Ferrari, though less than Honda, General Motors or its subsidiary Ford Motor Company.

Founded in 2009 by RJ Scaring as Mainstream Motors, the company changed to Rivian in 2011, a name derived from “Indian River” in Florida, a place Scaring frequented as a youth in a rowboat. . The startup is investing heavily to ramp up production, including 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.

Rivian, which disclosed losses of nearly $1 billion in the first half of this year, had 48,390 pre-orders for its pickup truck and R1S SUV in the US and Canada as of September. It is currently following a two-track strategy: manufacturing electric delivery vans. heroine and to develop an electric pickup and SUV brand aimed at the affluent.

Amazon, Joe
Discloses 20% stake in Rivian In late October, it ordered 100,000 of its electric delivery vans as part of the e-commerce giant’s effort to cut its carbon footprint. According to filings with the US Securities and Exchange Commission, Ford holds more than 5% stake in the EV startup.

Tough competition

Rivian, which secretly filed the paperwork for an IPO in August, will face stiff competition from automakers in both the consumer and commercial van markets.

Ford said last week that it has more than 160,000 orders for its F-150 Lightning electric pickup truck and that an electric version of its Transit commercial van is “completely sold out”. GM is starting production of electric delivery vans, sports utility vehicles and pickup trucks.

Rivian said it would sell 135 million shares at a price range of $57 and $62 each. Reuters reported in September that it may seek a valuation of about $80 billion and increase its US listing to $8 billion. Morgan Stanley, Goldman Sachs and JP Morgan are the principal underwriters. Rivian will be listed on the Nasdaq under the symbol “RIVN”.

Niket Nishant and Sanjana Shivdas of Reuters in Bengaluru contributed to this story.