NEW YORK: Electric vehicle-maker Rivian Automotive Inc priced shares in its initial public offering (IPO) at US$78 (RM323.74) apiece to raise about US$11.9bil (RM49.39bil), according to people familiar with the matter.
Backed by deep-pocketed companies such as Amazon.com Inc and Ford Motor Co, Rivian is hitting the public markets as it looks to make a dent in the electric vehicle (EV) market led by Tesla Inc.
The company sold 153 million shares in the offering, the people said, asking not to be identified because the matter is private.
Rivian’s US$11.9bil (RM49.39bil) haul makes it the biggest listing of 2021, and the sixth-largest ever on a United States exchange, according to data compiled by Bloomberg.
The IPO comes as Rivian delivered its first vehicles, mostly to its own employees, just a couple of months ago. It will only produce about 1,200 units by year-end at its plant in Normal, Illinois.
The company, which lost nearly US$1bil (RM4.15bil) in the first half of the year, estimates that annual production will hit 150,000 vehicles at its main facility by late 2023.
Based on the share count, Rivian is being valued at about US$76.4bil (RM317.10bil) on a fully diluted basis that accounts for stock options, the people added.
That compares with a valuation of US$27.6bil (RM114.55bil) after a US$2.65bil (RM11bil) funding round in January, Bloomberg News previously reported.
Rivian had earlier marketed 135 million shares at US$72 (RM298.84) to US$74 (RM307.14) after elevating that range from US$57 (RM236.58) to US$62 (RM257.33), according to filings with the US Securities and Exchange Commission.
A representative for Rivian couldn’t immediately be reached for comment on the price, which was first reported by The Wall Street Journal.
Though it’s a newcomer to the public market, Irvine, California-based Rivian’s entry into the world of consumer EVs has been more than a decade in the making.
Founder and chief executive officer R.J. Scaringe set up the first iteration of what would become Rivian in 2009 in his home state of Florida. Over the years, it attracted a wide array of backers.
As much as US$5bil (RM20.75bil) of the IPO shares are set to be bought by investors including Amazon, T. Rowe Price, Coatue Management, Franklin Templeton, Capital Research Global Investors, D1 Capital, Third Point Investors, Blackstone Inc, Dragoneer Investment Group and Soros Funds.
Rivian had a net loss of US$994mil (RM4.11bil) in the first six months of 2021, compared with a US$377mil (RM1.56bil) deficit a year earlier, according to its filings.
The company expected to record a quarterly net loss of as much as US$1.28bil (RM5.31bil) due to costs associated with the start of production of the R1T. — Bloomberg