NEW YORK, Nov 2 ― Rivian Automotive Inc, which is backed by Amazon.com Inc, is targeting a valuation of more than US$53 billion (RM353 billion) for its US debut, making the electric vehicle manufacturer potentially almost as valuable as rival Honda Motor .

The startup is looking to raise up to US$8.4 billion, setting it up to be the third-largest initial public offering (IPO) by funds raised in the past decade in the United States.

Only three other companies have raised more than US$8 billion while going public since 2011, according to data from Dealogic.

Alibaba raised a record US$25 billion in 2014, Meta Platforms Inc garnered US$16 billion in 2012, while Uber made US$8.1 billion in 2019.

Since last year, companies in the EV space have emerged as some of the hottest investments, especially among SPAC investors on the hunt for the next Tesla Inc.

While Rivian has yet to sell any significant volume of its electric vans or trucks, it could likely be valued higher than Ferrari, although less than Honda, General Motors or its backer Ford Motor Co.

Founded in 2009 as Mainstream Motors by RJ Scaringe, the company changed to Rivian in 2011, a name that is derived from "Indian River” in Florida, a place Scaringe frequented in a rowboat as a youth.

The startup has been investing heavily to ramp up production, including for its upscale all-electric R1T pickup truck, which was launched in September, beating out competition from established rivals such as Tesla, General Motors and Ford.

Rivian, which disclosed nearly US$1 billion in losses for the first half of this year, had about 48,390 pre-orders for its pickup trucks and R1S SUVs in the United States and Canada as of September.

It is currently pursuing a two-track strategy: building electric delivery vans for Amazon and developing an electric pickup and SUV brand aimed at affluent individuals.

Amazon, which disclosed a 20 per cent stake in Rivian at the end of October, has ordered 100,000 of its electric delivery vans as part of the e-commerce giant's effort to cut carbon footprint.

Ford holds a more than 5 per cent share in the EV startup, according to a filing with the US Securities and Exchange Commission.

Stiff competition

Rivian, which confidentially filed paperwork for an IPO in August, will, however, face tough competition from automakers in both the consumer and commercial van markets.

Ford said last week it has more than 160,000 orders for its F-150 Lightning electric pickup truck and that an electric version of its Transit commercial van is "completely sold out.”

General Motors is gearing up production of electric delivery vans, SUVs and pickup trucks.

Rivian said it would sell 135 million shares at a price range of between US$57 and US$62 each. Reuters reported in September that it could seek a valuation of nearly US$80 billion and raise up to US$8 billion in its US listing.

Morgan Stanley, Goldman Sachs and JP Morgan are the lead underwriters. Rivian will list on the Nasdaq under the symbol "RIVN”. ― Reuters