Rivian files what could be the 4th biggest IPO of the decade

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Amazon-backed electric vehicle maker Rivian confirmed on Friday that it had filed documents for an initial public offering, to sell on the Nasdaq under the ticker symbol “RIVN.” The notional value of the IPO is $ 100 million.

The public capital increase is led by a syndicate that includes powerful players Morgan Stanley, Goldman Sachs and JP Morgan.

According to the file, the electric vehicle maker is still far from profitable, losing $ 994 million in the first six months of 2021 and more than $ 1 billion in 2020.

“We are a growing company with a history of losses and we expect to incur significant expenses and continued losses for the foreseeable future,” the company said.

But that didn’t stifle Rivian’s ambition. The company announced plans to raise $ 8 billion on the IPO, which would make it the fourth U.S. IPO in the past decade behind a few familiar faces – Alibaba (NYSE: BABA) with $ 25 billion in 2014, Facebook (NASDAQ: FB) with $ 16 billion in 2012 and Uber (NYSE: UBER) with $ 8.1 billion in 2019.

The California-based company is among the nation’s most heavily funded startups, having raised more than $ 10.5 billion since the start of 2019 from Amazon (NASDAQ: AMZN), Ford Motor Co. (NYSE: F), T Rowe Price Group (NASDAQ: TROW) and Fidelity (NYSE: FNF), among others. With an arsenal loaded with huge backers, Rivian is seeking an $ 80 billion valuation for its IPO.

“We intend to use the net proceeds we receive from this offering for working capital to fund growth and other general business objectives, which may include research and development, sales and general administrative matters and capital expenditures, “the file says. “We may also use a portion of the net proceeds to acquire or invest in businesses, products, offerings and technologies, although we do not have any agreements or commitments for any significant acquisitions or investments for the moment.”


Read: Rivian for victory: Electric vehicle maker aims for $ 8 billion IPO bargain


Rivian’s R1T recently beat rival automakers Tesla (NASDAQ: TSLA), GM (NYSE: GM) and Ford as the market’s first electric pickup. And in the fall of 2019, it participated in the largest electric vehicle order ever, when Amazon purchased 100,000 of its delivery vehicles.

According to the filing, Rivian has granted Amazon “certain exclusivity and first refusal rights” to purchase its electric vehicles over the next four years. If Amazon doesn’t order at least 10,000 vehicles in consecutive calendar years, Rivian could opt out of the deal and force Amazon to reimburse those charges.

Rivian’s R1T is a pickup truck with over 300 miles of range at launch, with a range model of over 400 to follow in January. Its 0-60 mph time is as quick as three seconds depending on tire selection, and it can tow up to 11,000 pounds (with a 50% reduction in range at maximum tow).

In the brief, Rivian also announced plans to launch the R1S – a seven-passenger sport utility vehicle also with a range of over 300 miles and up to 7,700 pounds of towing capacity – in December.

“In the mainstream market, we have launched the R1 platform with our first generation consumer vehicle, the R1T, a two-row pickup truck for five passengers, and plan to launch the R1S, a three-row SUV for seven. passengers, in December. 2021, ”said Rivian. “The R1T and R1S are equipped with an exclusive set of advanced technological systems, including vehicle electronics, battery, electric propulsion, chassis, Driver + and digital user experience management. These technologies can continually improve and extend functionality through cloud-enabled OTA updates. “

Rivian is also in talks with officials in Fort Worth, Texas, and Mesa, Ariz., About building a $ 5 billion plant that would produce 200,000 vehicles per year to supplement its 2 plant. 6 million square feet in Normal, Illinois. Currently, the company operates six service centers in California, Illinois, Washington and New York, with 11 additional mobile service vehicles capable of traveling to a customer’s home for repairs.

“Rivian is in talks with several sites as part of a competitive process for the establishment of a second manufacturing plant. This may include Rivian involved in some public processes at potential locations. Involvement in these processes does not indicate a final decision, ”Jim Chen, vice president of public policy at Rivian, said in an email to FreightWaves in August.

Amazon began testing Rivian vans in March in the San Francisco area. The vans, which offer 150 miles of range on a single charge, three levels of shelves with a bulkhead door that can be opened and closed for added driver protection on the road, and a suite of roadside assistance technologies and road, are being driven by Amazon employees.

Amazon expects to have 10,000 Rivian vans in circulation by 2022 and all 100,000 orders by 2030.

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