Rivian could be one of the biggest end-of-year IPOs
Rivian significantly extends its losses ahead of the IPO. The alleged Tesla killer is said to have burned more than $ 2 billion in the first nine months.
Every beginning is expensive. Rivian has leaked out that it will post a loss of between $ 1.18 billion and $ 1.28 billion for the most recent quarter. Interestingly enough, “only” $ 725 to $ 775 million of this goes out for operational business. This mainly includes the recent start of production.
This is a decent boot and not exactly suitable for going public. The high loss also follows directly on the loss of almost $ -1 billion in the first half of the year. Nevertheless, nothing has changed in the stock exchange plans. The company is aiming for a market capitalization of at least $ 80 billion, and the current environment easily allows it to do so. The interest in new competitors in the field of EVs remains high. Rivian is also positioning itself in the high-income eco-chic niche and is hoping for high and above-average margins.
Rivian shows high losses before the IPO
To date, Rivian has only started production of the R1T. This is the company’s pickup truck that is being built at the Normal, Illinois factory. The starting price is extremely high at 67,500 US dollars (net) and does not include all the extras by far. On the other hand, the range of 314 miles (around 505 kilometers) is a bit poor. The competition is aiming for double that.
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But Rivian doesn’t have to worry about money for the time being. In the last 15 months alone, more than $ 7 billion in fresh capital has been raised in several financing rounds. The proceeds from the IPO are also likely to be in the mid-single-digit billion range, and the company has also announced the issue of a fixed-income bond with a nominal value of approximately 1 billion US dollars.
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26.10.2021 – Mikey Fritz
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