Rivian Automotive Inc., an electric vehicle manufacturer backed by Amazon.com Inc. and Ford Motor Co., on Tuesday priced shares in its highly-anticipated initial public offering at $78—well above its earlier expectations—to raise $11.93 billion, regulatory filings showed.
Rivian initially aimed to sell shares in a $57 to $62 a share price range, which it boosted to $72 to $74 a share on Friday.
Rivian also boosted the option for underwriters to buy 20.7 million shares, which could translate into another $1.61 billion funding.
Rivian will list its Class A common stock on the Nasdaq with the ticker “RIVN” on Wednesday.
Order Ramp Up And Listing Plans
The startup has been ramping up capacity and burning cash even as it speeds to getting itself listed at an estimated $77 billion valuation. The company reported a net loss of $994 million for the first six months of 2021, compared with a $377 million loss a year ago.
The electric vehicle maker expects to record a net loss of up to $1.28 billion in the quarter ended Sept. 30 due to increased costs related to the start of production of the R1T and R1S vehicle programs.
Rivian is reportedly investing at least $5 billion to build a second electric vehicle factory near Fort Worth, Texas. The manufacturing plant, codenamed “Project Terra,” would have an annual capacity of 200,000 electric vehicles and is expected to create at least 7,500 jobs by 2027.
Rivian, which had raised $10.5 billion from its backers, said it had about 55,400 pre-orders for R1T and R1S in the United States and Canada as of Oct. 31.
The company said it aims to fill the pre-order backlog by the end of 2023.
Rivian said it has produced 180 R1Ts and delivered 156 R1Ts as of October. By the end of the year, it aims to make about 1,200 R1Ts and 25 R1Ss and deliver about 1,000 R1Ts and 15 R1Ss.
Rivian expects to have up to $5.15 billion in cash and cash equivalents as of Sept. 30 to fund its growth.
Amazon.com shares closed 2.50 percent higher at $3,576.2 a share on Tuesday.
By Rachit Vats
© 2021 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.