Shares of electric vehicle maker Rivian have surged by up to 53 per cent in its Nasdaq debut, giving the Amazon-backed company a market valuation of more than $US100 billion ($A135 billion) after the world’s biggest initial public offering this year.
Rivian shares closed at $US100.73, marking a nearly 30 per cent jump from its offering price.
That made Rivian the second most valuable US carmaker after Tesla, which is worth $US1.06 trillion.
Despite having only recently started selling vehicles and having little revenue to report, Rivian ranked ahead of General Motors ($US86.05 billion), Ford ($US77.37 billion), and Lucid Group ($US65.96 billion).
Since last year, EV companies have emerged as some of the hottest investments.
Including securities such as options and restricted stock units, Rivian’s fully diluted valuation exceeded $US106 billion at its debut price.
The IPO allowed Rivian to raise about $US12 billion to fund growth, and that figure could rise to $US13.7 billion if the full over-allotment of shares is exercised.
This makes it the biggest US IPO since Alibaba went public in September 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.
Wall Street’s biggest institutional investors, including T. Rowe Price and BlackRock, are betting on Rivian to be the next big player in a sector dominated by Tesla amid mounting pressure on car firms to eliminate vehicle emissions.
Amazon is Rivian’s largest shareholder with a 20 per cent share.
Rivian’s IPO comes against the backdrop of the United Nations COP26 climate talks, where carmakers, airlines and governments unveiled a raft of pledges to cut greenhouse gas emissions from global transport.
California-based Rivian plans to build at least one million vehicles a year by the end of the decade, Scaringe said.
It has announced plans to open a second US factory and eventually set up production in China and Europe.
“Rivian is in the early stages of delivering its first vehicles to customers, which tells investors the company and vehicles are ‘real’ and not merely pictures in a slide deck,” D.A. Davidson & Co analyst Michael Shlisky said.
“This has been an issue with other EV companies in recent months.”
Rivian, also backed by Ford, priced an upsized IPO of 153 million shares at $US78 per share, raising nearly $US12 billion, making it one of the biggest US IPOs of all time.
Ford declined to reveal plans for its Rivian stake of about 12 per cent, which was worth about $US10 billion on Wednesday.