Rimac wants to go public next year in a $6 billion deal
The Croatian EV specialist could also end up owning 55% of Bugatti
Croatian EV specialist Rimac has been one of the automotive industry's biggest success stories. A decade after the launch of the Concept One hypercar, Rimac has become one of the most lauded and respected names in electric vehicle production and development. The company supplies electric powertrain components to multiple companies across the world and was also heavily involved in developing the stunning Pininfarina Battista hypercar, the most powerful Italian car ever produced. Porsche also recently bought a stake in the company, something which increased to 24% earlier this year as part of an investment that was worth 70 million euros (around $83 million).
What does Rimac have planned next then in its seemingly stratospheric rise in the automotive industry? According to a report from German outlet manager magazin, that next step is to take the company public. If the reports (which came from an undisclosed source) are true, Rimac is seriously planning an IPO at some point in 2022 that'll have a valuation of 5 billion euros ($6.1 billion). The report also claims that Rimac will also soon be acquiring a 55% share in Bugatti (making Rimac the majority owner in the Volkswagen Group subsidiary) and running the Bugatti brand in conjunction with Porsche, who would own a 45% share in the company.
The claims that Rimac will take majority ownership of Bugatti aren't unfounded. In fact, they support comments that Volkswagen CEO Herbert Diess said in March this year. "Transferring [Bugatti] to Rimac isn't true," Diess said at the time. "Porsche is currently preparing a partnership that's going to be under discussion with Rimac, and Porsche will be taking care of that. The whole thing isn't yet finalized. What we want to do is transition responsibility of Bugatti to Porsche, and Porsche in all probability will establish a joint venture with Rimac, with a minority share of Porsche."
It also makes a lot of sense too for Rimac to take over majority ownership of Bugatti and run it in conjunction with Porsche. Bugatti's focus is definitely shifting towards an electric future and Rimac's expertise with electric hypercars would be invaluable in creating a fully-electric successor to the Chiron or any number of brand new electric models, such as an ultra-luxurious high-performance SUV or Grand Tourer.
Going public might also be a fantastic option for Rimac. Several car companies have carried out IPOs in recent years, with several of them getting huge boosts in the company's value as a result. Ferrari's IPO saw its market value triple to an almost unfathomably massive $30 billion. whilst Tesla's IPO allowed it to overtake Toyota as the most valuable car company in the world, with a market value of $209.47 billion! Considering this previous history of even fairly botique manufacturers like Ferrari having huge boosts in value due to an IPO, it may very well be worth Rimac taking the risk and giving the whole process a go.
"As for going public, we're considering different options, but it hasn't been decided which direction we'll go in," a spokesperson from Rimac told Reuters about these latest rumours. Porsche also contribute their own statement, saying that "the future of Bugatti is an issue that will be decided on a group level".
Rimac is currently pushing the Nevera, a $2.4 million fully electric hypercar that's a production version of the C_Two concept. The Nevera has 4 electric motors that have a combined output of 1,914 horsepower and 1,740 lb-ft of torque, enough to rocket the Croatian-built monster from 0-60 in just 1.85 seconds and eventually up to a top speed of 258 mph. It's also unofficially set the time for the fastest quarter-mile for a production car, recording a time of 8.62 seconds at 171.7 mph.