Electrical pickup truck maker Rivian is alleged to be taking a look at an IPO to be publicly traded later this 12 months at $50 billion.
EV SPAC Frenzy
Over the previous couple of months, there was a powerful pattern of electrical automobile corporations going public by reverse merger SPAC offers.
Fisker, Arrival, Lion Electrical, Lordstown Motors, Proterra, Faraday Future, and others have all accomplished or introduced SPAC offers.
The pattern began amid Tesla having unimaginable efficiency on the inventory market and different EV corporations making an attempt to experience the momentum and lift extra money.
Whereas among the offers have been criticized as a result of the truth that a number of of these corporations have little to no income and/or not near reaching manufacturing, it has additionally helped to funnel extra money into the transition to electrical autos.
Rivian going to the great previous method
Rivian is likely one of the few EV corporations that didn’t bounce of the SPAC bandwagon.
The primary motive is that they don’t have any problem elevating cash privately.
In February 2019, Rivian received a $700 million round of funding led by Amazon, and Ford invested $500 million in the electric pickup startup simply two months later.
The startup additionally added Cox Automotive as an investor with a $350 million round in September. It topped off its 2019 with a massive $1.3 billion round of funding in December.
In 2020, the corporate went again to the financial institution and managed to raise another $2.5 billion from present traders and in addition T. Rowe Value Associates, an essential investor in Tesla.
They began 2021 sturdy with another $2.6 billion financing round closing final month.
Now, Bloomberg experiences that Rivian is eyeing an IPO later this 12 months at a valuation of about $50 billion:
“Rivian Automotive Inc., the electric-vehicle startup backed by Amazon.com Inc. and Ford Motor Co., is trying to go public as quickly as September at a valuation of about $50 billion and maybe extra, in keeping with individuals acquainted with the matter.”
Not like the beforehand talked about corporations, Rivian could be going the normal IPO method as an alternative of doing a SPAC deal.
Additionally, with its first deliveries deliberate for June, the automaker would wait till having some income earlier than going public.
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