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Rivian’s IPO Delivers Near $9 Billion Fortune for Saudi Investor -Breaking

by Mike Robinson

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© Bloomberg. NEW YORK – NOVBER 09: Rivian’s all-electric R1T pickup sits at its Brooklyn facility on Nov. 9, 2021. Rivian, which manufactures electric trucks and has backing from Ford and Amazon, is valued at $64 Billion ahead of its IPO tomorrow. Photo by Spencer Platt/Getty Images

(Bloomberg). A family from Saudi Arabia that relied on gas-powered cars for its livelihood is now sitting on a nearly $8.9 billion fortune as an electric vehicle maker. Rivian Automobile Inc.’s initial public offering (NASDAQ)

According to the prospectus, Abdul Latif Jamel is a Jeddah-based company named after its founder. He holds nearly 114 million shares of Rivian, which he acquired using $303 million in loans to U.S. companies. Rivian shares will trade in New York on Wednesday for $78 per share. This would put the company’s value at $76.4 billion if it is fully diluted.

Read: EV Maker Rivian Raises $11.9 Billion in Year’s Biggest IPO

Abdul Atif Jameel, who holds the stake, is now among Rivian’s biggest backers in Irvine, California, which includes Amazon.com Inc. (NASDAQ) Ford Motor Co (NYSE) As the distributor, this Saudi-based company is better known than it was in its native market. Toyota Motor Corp. (NYSE:) automobiles

Abdul Latif Jameel’s investment unit acquired warrants for Rivian stock in 2018. It was the first investment by the Saudi company, according to Rivian’s IPO filings, though an article in the magazine of management consultant McKinsey & Co. published in 2020 said it had first invested eight years earlier.

The rising concerns about climate change, improved battery technology and high fuel prices has led to electric vehicle shares soaring this year. Shares of Tesla Inc. (NASDAQ) have increased by 45%

Abdul Latif Jameel isn’t the only Saudi investor to benefit from an early investment in an electric-vehicle manufacturer. The kingdom’s sovereign wealth fund put $1 billion into Lucid Group Inc. (NASDAQ:) in 2018, followed by a further $600 million this year as the firm went public through a merger with a special purpose acquisition company.

Tuesday’s offering raised about $11.9 billion for Rivian, making it the biggest IPO this year. According to U.S. Securities and Exchange Commission documents, 135 million shares were sold at $72 to $74 before the price was raised from $57 to $62, as per filings.

 

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