NEW YORK -- Electric truck-maker Rivian Automotive Inc. is guiding potential investors that its initial public offering is likely to price above the top of its marketed range, people with knowledge of the matter told Bloomberg.
Rivian is offering 135 million shares for $72 to $74 each in its listing, which could be the seventh biggest U.S. IPO on record. If the stock prices above the top marketed price of $74 per share, the company would raise more than $10 billion and exceed a fully diluted valuation of more than $70 billion.
That compares with a valuation of $27.6 billion after a $2.65 billion funding round in January, Bloomberg News reported.
No final decision has been made, and details may still change. A representative for Rivian declined to comment.
The offering is being led by Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co., with more than 20 banks listed on the cover page of its prospectus. Rivian shares are expected to begin trading Wednesday on the Nasdaq Global Select Market under the symbol RIVN.
Investors will be buying into the promise of a class of EVs that mirror the gas-powered vehicles that dominate the passenger market: larger, bulkier vans and pickup trucks that are a sharp contrast to Tesla’s sleeker sedans. The company also has Amazon.com Inc.’s backing – the internet giant owns a 20 percent stake in Rivian and has placed an order for 100,000 of its delivery vans.
As is the case with many richly valued startups, they’ll also be buying into ambitious growth plans. Rivian delivered its first vehicles just a couple of months ago and will only produce about 1,200 units by year-end at its plant in Normal, Ill. The company estimates that annual production will hit 150,000 vehicles at its main facility by late 2023.