Ford-Backed Tesla Rival Rivian Looks To Raise $8.4B In IPO: What You Need To Know

Rivian Automotive Inc, an electric vehicle manufacturer backed by Amazon.com, Inc AMZN and Ford Motor Co F, is looking to raise about $8.4 billion in an initial public offering.

What Happened: Rivian plans to sell up to 135 million shares in the range of $57 to $62 per share, which would translate to funds raised around $8.4 billion, according to a filing with the U.S. Securities and Exchange Commission. There would also be a greenshoe option for underwriters to buy another 20.25 million shares, which could translate into another $1.25 billion.

Rivian intends to list its Class A common stock on the Nasdaq with the ticker "RIVN."

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 with the start of production of the R1T and R1S vehicle programs.

Rivian expects to have up to $5.15 billion in cash and cash equivalents as of Sept. 30 to fund its growth. 

See Also: Elon Musk Fires At Tesla Rival Rivian: Recommend They Get First Plant Working Before Jumping On Second

Aligning Order Bank With Listing Plans: 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. 

These orders are from buyers who have paid a cancellable and fully refundable deposit of $1,000.

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, and 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.

In the fall of 2019, Amazon ordered 100,000 electric delivery vans from the Southern California-based startup, following an initial $700 million investment from the e-tailer earlier that year.

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.

Price Action: Amazon.com shares closed 1.61% lower at $3,318.11 a share on Monday.

Photo: Courtesy of Rivian