Rivian Automotive Inc, an electric vehicle manufacturer backed by Amazon.com Inc AMZN and Ford Motor Co F, on Tuesday priced shares in its highly-anticipated initial public offering at $78 — well above its earlier expectations— to raise $11.93 billion, regulatory filings showed.
What Happened:
Rivian initially aimed to sell shares in a $57 to $62 a share price range, which it boosted to $72 to $74 a share on Friday.
Rivian also boosted the option for underwriters to buy 20.7 million shares, which could translate into another $1.61 billion funding.
Rivian will list its Class A common stock on the Nasdaq with the ticker “RIVN” on Wednesday.
Order Ramp Up And Listing Plans:
The startup has been ramping up capacity and burning cash even as it speeds to getting itself listed at an estimated $77 billion valuation. The company reported a net loss of $994 million for the first six months of 2021, compared with a $377 million loss a year ago.
The electric vehicle maker expects to record a net loss of up to $1.28 billion in the quarter ended Sept. 30 due to increased costs related to the start of production of the R1T and R1S vehicle programs.
Rivian is reportedly investing at least $5 billion to build a second electric vehicle factory near Fort Worth, Texas. The manufacturing plant, codenamed “Project Terra,” would have an annual capacity of 200,000 electric vehicles and is expected to create at least 7,500 jobs by 2027.
Rivian, which had raised $10.5 billion from its backers, said it had about 55,400 pre-orders for R1T and R1S in the United States and Canada as of Oct. 31.
The company said it aims to fill the pre-order backlog by the end of 2023.
Rivian said it has produced 180 R1Ts and delivered 156 R1Ts as of October. By the end of the year, it aims to make about 1,200 R1Ts and 25 R1Ss and deliver about 1,000 R1Ts and 15 R1Ss.
Rivian expects to have up to $5.15 billion in cash and cash equivalents as of Sept. 30 to fund its growth.
Price Action:
Amazon.com shares closed 2.50% higher at $3,576.2 a share on Tuesday.
—
Originally Posted on November 10, 2021 – Rivian Raises $11.9B In Upsized IPO: What You Need To Know
Disclosure: Benzinga
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Disclosure: Interactive Brokers
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Benzinga and is being posted with its permission. The views expressed in this material are solely those of the author and/or Benzinga and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
