© Reuters. FILE PHOTO: The Rivian R1T all-electric truck is pictured at an occasion, held by the electrical automobile startup, for patrons who preordered the truck, in Mill Valley, California, U.S., January 25, 2020. REUTERS/Nathan Frandino/File Photo
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(Reuters) -Amazon-backed EV maker Rivian Automotive Inc was set to fetch a valuation of nearly $107 billion on Wednesday, as its shares had been indicated to open greater than 60% above their supply value on the Nasdaq.
The mammoth valuation would make Rivian larger than Fiat maker Stellantis NV, legacy automakers and backers Ford and General Motors (NYSE:).
At 10:22 am ET, the inventory was indicated to open at $125 per share, blowing previous the supply value of $78 per share.
Since final 12 months, corporations in the EV house have emerged as among the hottest investments.
Wall Street’s largest institutional traders are betting on Rivian to be the following large participant in a sector dominated by Tesla (NASDAQ:) amid mounting strain on automakers in China and Europe to remove automobile emissions.
Rivian’s IPO comes towards the backdrop of the U.N. Climate Summit, which noticed automakers, airways and governments unveil a raft of pledges to minimize greenhouse fuel emissions from international transport.
Founded in 2009, Rivian has been investing closely to ramp up manufacturing, doubling down on its upscale all-electric R1T pickup truck, which was launched in September.
The Irvine, California-based firm plans to construct at the least a million automobiles a 12 months by the top of the last decade, its chief government mentioned on Tuesday.
Rivian priced an upsized IPO of 153 million shares at $78 per share, elevating nearly $12 billion, making it one of many largest U.S. preliminary public choices.
Morgan Stanley (NYSE:), Goldman Sachs (NYSE:) and J.P. Morgan are the lead underwriters.
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