(Businesshala) – Shares of Rivian Automotive Inc opened nearly 37% higher in its Nasdaq debut on Wednesday, giving the Amazon-backed electric vehicle maker a market valuation of nearly $93 billion and making it the second most valuable US automaker.
The huge valuation would make Rivian bigger than General Motors Co. by $86 billion, Ford Motor Co. by about $80 billion, and Lucid Group by $69 billion.
The stock opened at $106.75 per share, surpassing the offer price of $78 per share.
Since last year, companies have emerged as the most invested in the EV sector. Including securities such as options and restricted stock units, Rivian’s fully diluted valuation was more than $106 billion.
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.
Rivian is investing heavily to ramp up production, doubling down on its upscale all-electric R1T pickup truck 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.
Founded in 2009 by RJ Scaring as Mainstream Motors, the company was renamed as Rivian in 2011, a name derived from “Indian River” in Florida, a place Scaring took a rowboat as a youth. I come frequently.
After the scarring IPO, Rivian will hold all outstanding Class B common shares and receive 10 votes per share, Rivian said in a filing.
Ford-backed Rivian priced an IPO of 153 million shares at $78 per share, raising nearly $12 billion, making it one of the largest US initial public offerings ever.
According to the filing, Amazon, T. Roe Price, Franklin Templeton, Capital Research and Blackstone are among a group of “cornerstone investors” indicated to buy shares worth up to $5 billion.
Shares of Rivian were also offered to retail investors on Social Finance Inc (SoFi).
Morgan Stanley, Goldman Sachs and JP Morgan were the principal underwriters of the offering.