One of the hottest IPOs of the season is almost here. Followers of Lucid Motors (NASDAQ:LCID) and Nio (NYSE:NIO) have been waiting for another player to enter the electric vehicle race. Next week their wishes will come true as Rivian prepares to make its public debut. This IPO is being closely watched for good reason — it is well-positioned to be one of the largest IPOs that the U.S. has seen in the past decade, surpassing even some of its largest competitors. The RIVN stock IPO is scheduled to debut next week with shares trade on the Nasdaq.
Buyers Have Started Their Engines
So what do you need to know about Rivian and the RIVN stock IPO?
Rivian is employing a strategy similar to that of Lucid. It hasn’t actually delivered any vehicles yet except within the company. It has instead been riding the anticipation for its futuristic vehicles, though, and as talk of the IPO has heated up, preorders have surged. A recent report from InsideEvs indicates that the company will have delivered over 1,000 vehicles before the end of 2021.
The trade outlet also found plenty of data to suggest that Rivian is well equipped to deliver on the many preorders for the R1T, an electric truck that will be among the first of its kind. And before the end of the year, the R1S SUV will be making its debut along with the Rivian EDV Van, fulfilling a fleet order made by Amazon (NASDAQ:AMZN) in 2019.
Amazon saw so much potential in Rivian that it invested $700 million in the company. Another backer is auto giant Ford (NYSE:F), which invested $500 million in an attempt to cash in on the EV boom. Shares of both companies have been up since news broke of the RIVN stock IPO.
RIVN Stock IPO: The Road Ahead
What can we expect from Rivian? According to reports, the company is planning on pricing shares between $57-$62 apiece, securing a valuation that could go as high as $55 billion, if not higher. CNBC reports that the company could be seeking a valuation of at least $60 billion.
If all goes according to plan, the RIVN stock IPO could see a valuation that makes it as valuable, if not more so, then auto giant Honda (NYSE:HMC). Collectively, the startup has its sights on raising $8.4 billion in the IPO. This feat would put it in elite group, just behind Alibaba (NYSE:BABA) and the newly renamed Facebook (NASDAQ:FB), which respectively raised $25 billion and $16 billion in their IPOs. It would also put the company ahead of ride-hailing innovator Uber (NYSE:UBER),whose IPO generated only $8.1 billion.
A Green Future
It’s clear that the RIVN stock IPO will mark the next catalyst for the EV boom, a phenomenon that has dominated markets all year. Even with the supply chain crisis plaguing manufacturers, many EV producers have mostly kept up with the growing demand. There’s no evidence to suggest that Rivian will be any different as it begins to trade.
Aside from the collective success of American EV producers, it’s worth noting that Rivian’s competitive edge comes from its vehicles. While Lucid and Tesla (NASDAQ:TSLA) have been busy with high-quality sedans, Rivian has focused on trucks, SUVs and delivery vans, all products with less competition from domestic rivals. Important companies have bet big on Rivian and Wall Street is likely to do the same. Everyone should be watching the RIVN stock IPO.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
