Rivian is close to its biggest deal ever: The autonomous battery maker, owned by China’s Zhejiang Rivian, is seeking to raise more than $50 billion in an initial public offering, according to a person familiar with the matter.
The ambitious valuation is based on a more than 100 percent increase in the market value of the company in the first year of trading, or more than $150 billion.
Rivian is making a six-seat, 50-50 electric sport utility vehicle to be sold to Ford (NYSE:F) later this year. A smaller version for Chinese automakers, called the Aviator, is planned for 2021, followed by a larger SUV in 2021.
The number of shares to be sold in the offering has not been determined, but a spokesperson for Rivian declined to comment.
An IPO announcement is expected on Monday, said the person, who asked not to be identified because the information is private.
Rivian is expected to be valued at about $20 billion to $30 billion, according to a separate person familiar with the matter. That price range could increase, though that person cautioned that it’s still too early to say for sure.
As part of the deal, General Motors’s GM Ventures will invest $500 million and form a strategic partnership with Rivian’s U.S. unit. Another $500 million will be invested in the company by up to four unnamed third parties.
Story originally published by The Deal. Copyright 2018 Bloomberg.