Why Volvo’s CEO says that after IPO ‘the work really starts’

STOCKHOLM — Volvo Cars gained 200,000 new shareholders even before trading of the automaker’s shares started on Friday in Sweden.

When asked how he felt about having that many new bosses, CEO Hakan Samuelsson said: “The more the merrier.”

He said the the 94-year-old’s company’s entry onto the Nasdaq Stockholm marks the start of Volvo’s next phase, which will include transforming into an electric-only brand by 2030 and providing the “best customer relations in the business” through an emphasis on direct-to-consumer online sales.

“And now we have the money for it,” Samuelsson joked minutes before ringing the opening bell for the opening of trading. At that moment, Volvo rejoined the exchange for the first time since 1999. That was the year it left Volvo Group and became part of Ford Motor. The U.S. automaker sold Volvo to its current owner, Zhejiang Geely Holding, in 2010.

During an interview after the ceremony Samuelsson said that the next phase is “a huge job.”

Electric flagship

Some of the money generated from the listing will go toward is a new flagship crossover that will succeed the XC90, Samuelsson told Automotive News Europe.

The electric-only premium large crossover is due to be revealed next year. Samuelsson said in March the car would have a name rather than a number and letter combination. He gave another hint today: The new car’s name will start with a vowel.

Another high-cost item the listing funds will help to finance is the cost of transforming to batteries to power new-generation Volvos. Part of that includes joining forces with Northvolt as a strategic partner for joint development and manufacturing of next generation battery cells.

Samuelsson said he looks forward to keeping an eye on Volvo’s share price as he considers it an immediate indicator of whether his thousands of new bosses feel the company’s transformation into an electric brand is heading in the right direction.

“Today, we are 3 percent electric. Nine years in the future, we should be 100 percent electric. Now is when the work really starts,” he said. “We need to change because our consumers are going in that direction. If you really want to have people driving Volvos in the future, you better make them electric.”

Humble and faster

The completion of the listing culminated a 180-degree turn that Volvo made in February when it decided against a merger with sister brand Geely Auto.

Volvo CFO Bjorn Annwall said that while the automaker was assessing the merger it decided that the pace of change within the industry made an initial public offering the better move.

“We concluded that it’s much better to have an ecosystem than to have a hard-coded group where you try to kind of have a perfect 10-year plan,” Annwall told ANE. “You’re much faster and more nimble if you have smaller, independent units that seek collaboration where it matters but are not forced to do it when it doesn’t matter, so let every company pursue its own happiness.”

https://www.autonews.com/executives/why-volvos-ceo-says-after-ipo-work-really-starts…

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Rivian aims for up to $54.6 billion valuation in upcoming IPO

Electric vehicle start-up Rivian Automotive is targeting a market valuation of as much as $54.6 billion in its upcoming initial public offering, according to its amended prospectus filed Monday.

The company said it plans to offer 135 million shares priced between $57 and $62, with an option for underwriters to purchase up to 20.25 million additional shares. At the high end of that range, Rivian would bring in roughly $9.6 billion in its market debut, assuming underwriters exercise that option.

However, those numbers could change based on actual demand from investors before the company goes public. Earlier on Monday, sources told CNBC that it would seek a valuation of more than $60 billion.

Rivian R1T electric truck

Source: Rivian

Rivian plans to go public as soon as next week, sources familiar with the matter confirmed to CNBC. It plans to list on the Nasdaq under the ticker symbol “RIVN,” according to Rivian’s IPO prospectus filed last month.

In Monday’s filing, Rivian said investors, including Amazon and T. Rowe Price, have indicated an interest in buying up to $5 billion in shares in aggregate at the time of the IPO. The company said it will also give retail investors access to purchase a portion of its IPO shares through SoFi’s online brokerage platform.

The valuation would make Rivian the titan among a crop of electric vehicle start-ups and recently public companies from the U.S., including Fisker, Lordstown Motors and Lucid, and would put it on par with Chinese electric vehicle maker Nio. It would also mean Rivian is only slightly less valuable than traditional automotive giants such as Ford, which is an investor in Rivian; Stellantis, which was created from the merger of Fiat-Chrysler and PSA; and GM.

Read more about electric vehicles from CNBC Pro

Rivian is developing commercial last-mile delivery vans for Amazon, which has said it plans to have 10,000 vans on the road by 2022 and 100,000 by 2030. Rivian also beat Tesla, GM and Ford to the market with an electric pickup, the R1T, which has received early acclaim. The company noted in its amended prospectus that it’s delivered 156 R1Ts as of the end of October, and plans to deliver 1,000 by the end of the year.

Amazon last week disclosed it has a 20% stake in Rivian, which, combined with other equity investments, had a carrying value of up to $3.8 billion. Amazon has invested more than $1.3 billion in Rivian to date, the automaker said in a separate securities filing earlier this month.

Ford holds a roughly 12% stake in Rivian, sources had told CNBC.

WATCH: Amazon reveals it has 20% stake in Rivian

https://www.cnbc.com/2021/11/01/rivian-aims-for-60-billion-valuation-in-upcoming-ipo.html…

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Rivian, the Amazon-backed electric vehicle maker, seeks to raise $8.4 billion in IPO

Amazon-backed electric car maker Rivian is seeking a valuation that would place it among the world’s most valuable automotive companies when it goes public in the coming days, according to an amended S-1 filing on Monday.

Rivian said it expects to offer 135 million shares of its Class A common stock priced between $57 and $62 per share. An additional 20.25 million shares will be made available to the IPO’s underwriters. Rivian could raise as much as $8.4 billion when it debuts if shares trade at the high end of its range, or a total of more than $9.6 billion if underwriters exercise their options.

The California-based company’s filing indicates a targeted valuation of more than $53 billion based on outstanding shares, though that number could change based on investor demand and market conditions. The Wall Street Journal reported Rivian is seeking a valuation of more than $60 billion.


Electric truck maker Rivian Automotive, which currently sources batteries from South Korean supplier Samsung SDI (006400.KS), plans to build battery cells in-house, its filing for a U.S. initial public offering showed on Friday. (Photo by Michael Bro

Rivian said it would make a portion of its shares available to retail investors through SoFi’s online brokerage platform. The company will trade on the NASDAQ exchange under the stock symbol “RIVN.” Rivian is expected to begin public trading next week.

RJ Scaringe, founder and chief executive officer of Rivian Automotive Inc., unveils the R1T electric pickup truck, left, and R1S electric sports utility vehicle (SUV) during a reveal event at AutoMobility LA ahead of the Los Angeles Auto Show in Los (Getty Images)

With a strong debut, Rivian could earn a higher valuation than Honda, which is currently valued at roughly $53 billion. Ford Motor Company, which holds a stake in Rivian, is currently valued at roughly $71 billion, while General Motors is valued at roughly $80 billion.

Rivian said it expects to deliver approximately 1,000 of its R1T electric pickup trucks by the end of the year. Last month, the company said it lost nearly $1 billion through the first six months of the year.



Last month, Amazon disclosed it holds an approximately 20% stake in Rivian. The e-commerce giant has already contracted Rivian to provide 100,000 electric delivery vans by 2030. 

https://www.foxbusiness.com/markets/amazon-backed-rivian-ipo-valuation…

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