Amazon-backed electric vehicle (EV) maker Rivian Automotive on Friday revealed that it has confidentially filed a registration form for an initial public offering (IPO). The company has added that the size and price range of the offering has not yet been finalized.
This comes just months after news reports by Bloomberg claimed that the firm had roped in JPMorgan, Goldman Sachs, and Morgan Stanley as its underwriters for an impending IPO, that could unlock valuations worth as much as $70 billion. The EV maker has also been scaling up its production across different regions in the United States, while also planning to set up a new manufacturing unit/assembly plant. Rivian’s existing plant in the US is situated at Normal, Illinois.
A Business Deal That Is 100,000 Vans Strong
Just last month, the startup had closed a financial round led by Amazon, T. Rowe Price, and Ford Motor, after having raised a sum if $2.5 billion through the same. Since 2019, the firm has raised a total of $10.5 billion through fundings, as per reports bhi PitchBook. September 2019 also saw Amazon agreeing to purchase 100,000 Rivian electric van models, while the beginning of this year saw the company start testing its electric delivery vans in Los Angeles and San Francisco. In January 2021, Rivian stood at a valuation of $27.6 billion after raising another $2.65 billion.
Apart from delivery vans, Rivian also claims that when launched, its pick up will have a range of over 300 miles, and will be priced at around $67,500. Similar models are also being put forward by Ford, Volkswagen, and General Motors.
Delayed And Postponed Deliveries Owing To COVID
Rivian has often been touted to be a on its way to becoming a major competitor to market leader Tesla.
However, Chief Executive RJ Scaringe had informed customers just last month that the deliveries of vehicles, which had earlier been scheduled for July, have been pushed back to later this year, owing to the “cascading impacts of the pandemic.” A new 400-mile plus model is slated to be launched in January next year.
The firm is also considering setting up a European plant. Small facilities are present in many other locations, like an engineering office at Woking in the UK.
Following the announcement of the IPO, Ford saw nearly a 3 per cent rise in share prices. But chief backer Amazon remained rather flat even after the revelation, seeing only a marginal increase in share prices on Friday.