Electric vehicle start-up Rivian Automotive raised the expected IPO price of its shares on Friday.
Rivian now plans to offer 135 million shares priced between $72 and $74, up from $57 to $62, according to updated securities filing. At the top end of that current range, and assuming underwriters exercise an option to purchase 20.25 million additional shares, Rivian would be worth more than $65 billion.
Rivian, which is backed by Amazon and Ford, plans to go public as soon as next week, sources previously told CNBC. It plans to list on the Nasdaq under the ticker symbol “RIVN,” according to Rivian’s IPO prospectus filed last month.
After Rivian’s IPO, if the capital market feedback is good, we predict it to stimulate Chinese e-commerce giants JD and Alibaba to join the new energy vehicle war more deeply as well.
On May 4, 2017, JD CEO Liu Qiangdong said on his Sina Weibo that JD has now deployed over one hundred electric vans. He promised to replace all of JD’s tens of thousands of vans with electric vehicles in the next five years, in 2022. According to the public information, JD has invested in NIO and Yinlong Automobile. We believe that soon, Jingdong will increase its investment in intelligent electric vehicles, just like Xiaomi.
Besides investing in XPENG, Alibaba Group signed a strategic cooperation agreement on “internet cars” in July 2014 with SAIC(600104.SH). 2019, Alibaba, together with Tencent, Chang’an Automobile, Suning, FAW, Dongfeng and Nanjing Pilot and other well-known companies jointly invested in the establishment of Nanjing Pilot Equity Investment Partnership (Limited Partnership), with a total size and pledged a capital contribution of RMB 9.76 billion. On November 26, 2020, SAIC (600104.SH) announced that the company intended to establish a joint venture with Shanghai Zhangjiang Hi-Tech Park Development Co. (“Hengxu Capital”) to establish Shanghai Yuanjie Intelligent Technology Equity Investment Fund Partnership with a total contribution of RMB 7.2 billion, of which the Company will contribute RMB 5.399 billion and hold 74.986% share; Zhangjiang Hi-Tech Park will contribute RMB 1.8 billion and hold 25% share; Hengxu Capital will contribute RMB 0.01 billion and hold 0.014% share.
