EV maker Rivian likely to reach $107bn valuation in debut on Nasdaq
Amazon-backed company set to start trading at 60% above its offer price of $78 a share
Amazon-backed EV maker Rivian Automotive was set to fetch a valuation of nearly $107bn on Wednesday, as its shares were indicated to open more than 60% above their offer price on the Nasdaq.
The mammoth valuation would make Rivian bigger than Fiat maker Stellantis, and backers Ford and General Motors.
At 10.22am ET, the stock was indicated to open at $125 per share, blowing past the offer price of $78 per share.
EV companies have emerged as some of the hottest investments. Wall Street’s biggest institutional investors are betting Rivian will be the next big player in a sector dominated by Tesla as automakers in China and Europe face mounting pressure to eliminate vehicle emissions.
Rivian’s IPO comes against the backdrop of the UN Climate Summit, where automakers, airlines and governments unveil a raft of pledges to cut greenhouse gas emissions from global transport.
Founded in 2009, Rivian has been investing heavily to ramp up production, doubling down on its upscale all-electric R1T pickup truck, which was launched in September.
The Irvine, California-based company plans to build at least 1-million vehicles a year by the end of the decade, its CEO said on Tuesday.
Rivian priced an upsized IPO of 153 million shares at $78 per share, raising almost $12bn, making it one of the biggest US initial public offerings.
Morgan Stanley, Goldman Sachs and JPMorgan are the lead underwriters.
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