American eCommerce giant Amazon-backed electric vehicle (EV) startup, Rivian Automotive has raised the expected initial public offering (IPO) price of its shares, as the EV manufacturer targets a valuation of $65 billion in the offering.
Rivian now plans to offer 135 million shares in the range of $72 to $74, up from $57 to $62, according to an updated securities filing. The company now seeks to raise nearly $10 billion on November 9.
The IPO could make Rivian one of the only three companies that have raised more than $8 billion in a decade after Alibaba and Facebook. The increased price band follows a successful investor roadshow this week, as Wall Street’s big IPO investors bet on Rivian to be the next big player in a sector dominated by Tesla.
While the startup has yet to sell any significant volume of its electric vans or trucks, a $65 billion valuation for Rivian could make it more valuable than Fiat maker Stellantis and bring it closer to legacy automakers Ford and General Motors (GM).
Rivian has been investing heavily to ramp up production, including for its upscale all-electric R1T pickup truck which was launched in September, beating out competition from established rivals such as Tesla, GM and Ford.
The company had about 55,400 R1T and R1S preorders in the US and Canada, as of October 31. Rivian said it had started deliveries of the R1T and had recorded revenue for the three months ended September 30. Net loss for that period, however, is estimated to increase due to higher production costs.
The EV market is booming as consumers are more environmentally conscious and is seen as a symbol of luxury for many brands. Tesla produced a record number of cars in its latest quarter, suggesting strong demand for electric cars.
Amazon has ordered 100,000 of Rivian’s electric delivery vans as part of the eCommerce giant’s effort to cut its carbon footprint. However, Rivian will face competition from automakers in both the consumer and commercial van markets.