EV startup Rivian, backed by Amazon and Ford, targets over $53 bln valuation in IPO

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Rivian introduces R1T all-electric pickup motortruck astatine Los Angeles Auto Show successful Los Angeles, California, U.S. November 27, 2018. REUTERS/Mike Blake

Nov 1 (Reuters) - Rivian Automotive Inc, which is backed by Amazon.com Inc (AMZN.O), is targeting a valuation of much than $53 cardinal for its U.S. debut, making the electrical conveyance shaper perchance astir arsenic invaluable arsenic rival Honda Motor (7267.T).

Since past year, companies successful the EV abstraction person emerged arsenic immoderate of the hottest investments, particularly among SPAC investors connected the hunt for the adjacent Tesla Inc (TSLA.O).

While Rivian has yet to merchantability immoderate important measurement of its electrical vans oregon trucks, a valuation implicit $50 cardinal would marque it worthy astir $15 cardinal little than its backer Ford Motor Co (F.N), which makes astir 4 cardinal vehicles a year.

It could apt beryllium valued higher than Ferrari (RACE.MI), but would beryllium smaller than General Motors (GM.N).

Founded successful 2009 arsenic Mainstream Motors by R. J. Scaringe, the institution changed to Rivian successful 2011, a sanction that is derived from "Indian River" successful Florida, a spot Scaringe frequented successful a rowboat arsenic a youth.

The startup has been investing heavy to ramp up production, including for its upscale all-electric R1T pickup truck, which was launched successful September, beating retired contention from established rivals specified arsenic Tesla, General Motors and Ford.

Rivian had astir 48,390 pre-orders for its pickup trucks and R1S SUVs successful the United States and Canada arsenic of September.

It is presently pursuing a two-track strategy: gathering electrical transportation vans for Amazon and processing an electrical pickup and SUV marque aimed astatine affluent individuals.

Amazon, which disclosed an astir 20% involvement successful Rivian astatine the extremity of October, has ordered 100,000 of its electrical transportation vans arsenic portion of the e-commerce giant's effort to chopped c footprint.

Ford holds a much than 5% stock successful the EV startup, according to a filing with the U.S. Securities and Exchange Commission.

STIFF COMPETITION

Rivian, which confidentially filed paperwork for an archetypal nationalist offering successful August, will, however, look pugnacious contention from automakers successful some the user and commercialized van markets.

Ford said past week it has much than 160,000 orders for its F-150 Lightning electrical pickup motortruck and that an electrical mentation of its Transit commercialized van is "completely sold out."

General Motors is gearing up accumulation of electrical transportation vans, SUVs and pickup trucks.

Last month, Rivian disclosed astir $1 cardinal successful losses for the archetypal fractional of this twelvemonth and said it would merchantability 135 cardinal shares astatine a terms scope of betwixt $57 and $62 each. work much

At the apical extremity of the range, the IPO volition fetch much than $8 billion.

Reuters reported successful September that Rivian could question a valuation of astir $80 billion, raising up to $8 cardinal successful its U.S. listing.

Morgan Stanley, Goldman Sachs and J.P. Morgan are the pb underwriters. Rivian volition database connected the Nasdaq nether the awesome "RIVN".

Reporting by Noor Zainab Hussain and Niket Nishant successful Bengaluru; Editing by Arun Koyyur

Our Standards: The Thomson Reuters Trust Principles.

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