Amazon’s electric vehicle (EV) manufacturer Rivian saw its shares rocket 53 per cent on its Nasdaq debut on Wednesday, its floatation marking the world’s biggest this year.
The company has achieved a valuation of £100 billion after the floatation, seeing its share price closing at $100.73, a 30 per cent leap from its offering price.
Rivian is now the second most valuable US vehicle maker after Elon Musk’s Tesla, which is worth $1.06 trillion, despite only just starting to sell vehicles and has little revenue to report.
The company is now ranked ahead of General Motors and Ford.
The automotive maker is currently struggling to ramp up its production lines as a result of the supply-chain constraints.
Amazon tied up with the company in 2019 and has ordered up to 100,000 vans up until 2024 as it seeks to make its last-mile delivery division as sustainable as possible.
The ecommerce giant seeks to make all of its delivery vans as green as possible as Prime subscriptions keep rising.
With growing concerns surrounding the climate crisis, EV companies have become hot stock, with Rivian’s fully diluted valuation exceeding its $106 billion debut price.
The public offering has enabled Rivian to raise around $12 billion to fund further growth, making it the biggest US floatation since Alibaba’s in 2014.
“The transition to a public company (and) the growth in our capital base enables Rivian to develop promising products and volume and growth in terms of new segments and new vehicles that we’ll be going into,” Rivian chief executive R.J. Scaringe said in an interview with Reuters.
Some of Wall Street’s biggest institutional investors, which include the likes of BlackRock and T. Rowe Price predict Rivian to become the sector’s second biggest player and Tesla’s rival.
Amazon is Rivian’s largest shareholder with a 20 per cent stake.