Rivian Inc., the electric car company led by ex-Tesla Inc. and Google Inc. employees, filed to sell shares that could raise as much as $550m.
The offering could raise as much as $51.6bn if the entire deal is at the midpoint of its proposed valuation. It plans to offer 10.5m shares in a range of $21 to $24 a share, according to the prospectus. The Silicon Valley-based company will trade under the symbol RIVN.
Rivian was founded in 2010 by former Google engineers including co-founder Robert Latham. RIVN’s electric vehicles can be charged at home with a system that uses a solar panel or connected hub. The company started making its first vehicle, the Rivian Urban SUV, earlier this year and has raised $350m in capital. Rivian declined to comment.
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Tesla is the biggest electric car brand, followed by Ford Motor Co. and General Motors Co. Rivian’s offering may help show investors that electric vehicles are viable and capable of providing consistent margins. Rivals have struggled to meet demand, with some manufacturers scrapping plans to make their own electric vehicles. Electric-car maker Nio Inc. is seeking to debut a technology-focused IPO, according to people familiar with the matter. Chinese electric-car company BYD Co. has also been in talks with underwriters about a possible IPO, according to a person familiar with the matter.
Rivian may use some of the proceeds to fund the company’s manufacturing operations, according to the prospectus. In a response to investor concerns about the company’s finances, Rivian said its model has a “very low development cost with nominal depreciation and may be invoiced at production volumes”.