Rivian's mega-IPO has been reported to be built with a truckload of private capital, with the EV maker set to make their public market debut in the coming days. The move will make Rivian one of the largest automotive IPOs on record, with the sale expected to generate over $9.8 billion, selling 135 million shares at between $72 and $74 each. The initial public offer would make Rivian hit a value of $70.6 billion at the midpoint price of $73 on a fully diluted basis, a little shy of Ford’s $75.7 billion market cap.
The automaker is the latest high-profile company to go public after Robinhood and Roblox took a similar step earlier this year. Rivian was valued at $27.6 billion earlier in 2021 and has raised over $11 billion in private capital since it was founded.
Rivian was founded by RJ Scaringe, who also remains the company's CEO, controlling 11.1% of the voting power. Amazon is Rivian's largest investor with a 22.4% stake that would be worth $11.7 billion at the midpoint price of $73. The online retail giant led a $700 million investment in 2019 to make it one of the earliest large backers.
T. Rowe Price has also been able to amass an 18.8% stake after leading several mega-rounds in recent years, with Ford, a relatively early investor remaining one of the company's largest backers.
Rivian survived off of angel investors and various grants for years until the company received a $450 million investment from Sumitomo Corp., Standard Chartered Bank and Abdul Latif Jameel, a Saudi Arabian investment group. The EV startup has continued to attract the attention of investors, with Ford, Amazon and T. Rowe Price all leading the funding rounds.
Rivian currently has relatively minimal revenue, only recently starting to deliver vehicles. However, the company believes the total addressable market for its products is around $9 trillion, already with more than 55,000 non-binding customer preorders for its electric trucks and SUVs in the US and Canada, according to company filings. Amazon has also placed a commercial order for 100,000 vehicles.
In the long term, the company hopes to make a substantial amount of recurring revenue from the provision of services, including software, memberships, financing and a charging network.
For more information about the Rivian IPO and public offerings, visit - https://willowstreamcapital.com/.
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