EV maker Rivian likely to fetch nearly $107 billion valuation in market debut

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(Businesshala) – Amazon-backed EV maker Rivian Automotive Inc was set to receive a valuation of about $107 billion on Wednesday, as its shares were prompted to open more than 60% off their offer price on the Nasdaq.

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The huge valuation would make Rivian bigger than Fiat maker Stelantis NV, the legacy automaker and backer of Ford and General Motors.

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At 10:22 a.m. ET, the stock was indicated to open at $125 per share, surpassing the offer price of $78 per share.

Since last year, companies have emerged as the most invested in the EV sector.

Wall Street’s biggest institutional investors are betting on Rivian to become the next big player in the Tesla-dominated sector amid mounting pressure on automakers in China and Europe to eliminate vehicle emissions.

Rivian’s IPO comes against the backdrop of a United Nations climate summit, in which automakers, airlines and governments unveiled a number of pledges to cut greenhouse gas emissions from global transportation.

Founded in 2009, Rivian is investing heavily in ramping up production, doubling down on its upscale all-electric R1T pickup truck, which was launched in September.

The California-based company Irvine plans to make at least one million vehicles annually by the end of the decade, its chief executive said Tuesday.

Rivian raised about $12 billion in an IPO of 153 million shares at $78 per share, making it one of the largest US initial public offerings.

Morgan Stanley, Goldman Sachs and JP Morgan are the principal underwriters.

Reporting by Noor Zainab Hussain in Bangalore; Editing by Arun Koyur

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