The electric vehicle Manufacturer Rivian has priced its initial public offering at $ 78 per share, well above expectations, paving the way for one of the biggest U.S. stock market debuts of the past decade.
The pricing, confirmed by two sources with direct knowledge of the company’s plans, would exceed $ 10.5 billion for Rivian at a market value of $ 66.5 billion, or $ 77 billion on a fully diluted basis.
The Amazon-backed company will make its first trade on the Nasdaq exchange on Wednesday morning.
The offer price represents a significant jump over the initial $ 52- $ 62 per share range it set at the beginning of this month, and above its revised $ 72- $ 74 target announced as recently as Monday.
The increased target reflects sky-high expectations for Rivian, which has yet to record revenue, and suffered nearly $ 1 billion in losses in the first half of this year.
Rivian has just over 50,000 pre-orders for its R1T pickup and R1S sport utility vehicle, as well as an order from Amazon for 100,000 trucks to be delivered by 2025. The e-commerce group has participated in several multi-billion-dollar rounds of financing for Rivian, and owns 22 percent of the company.
Bullish investors see an opportunity to buy into a company that according to some has the potential to emulate the success of Tesla, which in October a market capitalization of $ 1tn.
“The dream they’re selling is pretty extraordinary,” remarked one person who worked on Rivian’s IPO.
“If you think about Rivian’s predecessor in Tesla, and what was achieved in that share, and how it disrupted that industry and sustained that disruption, the dream around Rivian is also quite true. It’s fascinating. “