According to a report published by Automotive News, it seems Rivian may have chosen its underwriters for its upcoming IPO. However, the news originally comes from Bloomberg via “people familiar with the matter.” As usual, these people have asked to remain anonymous. They also said that no final decisions have been made.
At any rate, the sources noted that the Amazon-backed electric truck maker is already working with Goldman Sachs Group Inc. JPMorgan Chase & Co., and Morgan Stanley. Moreover, the story suggests Rivian could be seeking a value of some $70 billion when it goes public. Earlier stories from Bloomberg News pointed to a valuation of some $50 billion. JP Morgan Chase and Morgan Stanley declined to comment. Goldman Sachs didn’t respond.
Automotive News says Rivian was worth $27.6 billion back in January after raising $2.65 billion in a fundraising round supported by Amazon, Fidelity, and T. Rowe Price.
For those unaware, Rivian has been around for many years, and it has changed names and locations over the years. Now, its main factory is the old Mitsubishi plant in Normal, Illinois, where it plans to build “tens of thousands of vehicles” over the next year. Deliveries are set to begin in July following a recent one-month delay.
The delay comes as no surprise as most of the entire global automotive industry is facing a chip shortage. Rivian is in the midst of parts delays from suppliers, along with a backlog on the shipping of the parts.
In addition, Rivian told Automotive News it’s having issues securing enough shipping containers, as well as getting its vehicle servicing situation finalized. According to the anonymous sources, the startup EV brand will also use the extra time to assure that delivery logistics for the upcoming R1T electric pickup are readied for smooth sailing.