No vote on finances for Chinese driverless car start-up Rivian

Rivian wants to inject more capital into the electric vehicle startup, which raised $140m from an IPO in the US in June Rivian, a technology start-up that is aiming to build driverless electric vehicles,…

No vote on finances for Chinese driverless car start-up Rivian

Rivian wants to inject more capital into the electric vehicle startup, which raised $140m from an IPO in the US in June

Rivian, a technology start-up that is aiming to build driverless electric vehicles, will list on Monday after its owner, China’s Anhui Jianghuai Automobile (JAC), raised the number of shares to more than 80 million from 45 million in its $140m (£107m) IPO in June.

The carmaker, which was spun out of the auto supplier in January 2017 and was renamed Rivian in July, aims to raise more than $2.7bn from the initial public offering (IPO) of new shares, the company said in a filing last week with the US Securities and Exchange Commission. It has set a share price of $23-27 for the stock, which will start trading on the Nasdaq stock exchange on Monday.

Rivian’s IPO was considered a bellwether for other Chinese start-ups looking to list in the US. The company has received backing from Anhui Jianghuai Automobile, also known as JAC, a privately owned company that holds an 80% stake in Rivian. The holding firm had planned to sell around 25m Rivian shares in the IPO, but raised the number of shares to 80 million in October after it was oversubscribed by about four times.

Rivian’s claim to fame is that it is the first US start-up to offer fully driverless electric cars, something investors are betting on because of the company’s ambitious goals. The largest publicly listed start-up in the industry is Nvidia, which trades on Nasdaq at around $142.60, and designs advanced graphics processors that companies put in cars. Rivian will share little with investors about its business model, and investors will be able to buy shares, but not vote on the company’s finances, according to the company’s IPO filing.

Rivian will start trading on Monday.

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