Company news in brief
Company news in brief

Company news in brief

Jo-Mare Duddy Booysen
Rivian boosts IPO price range

Rivian Automotive, backed by Amazon.com Inc, on Friday significantly raised the expected offer price of its shares, with the electric vehicle manufacturer aiming for a valuation of as much as US$65 billion in its initial public offering.

It had earlier aimed for a valuation of more than US$53 billion at a price of US$62 per share. The company now expects to sell 135 million shares in the range of US$72-US$74 apiece to raise nearly US$10 billion on Nov. 9.

The IPO could make Rivian one of the only three companies that have raised more than US$8 billion in a decade after Alibaba and Facebook.

While the startup has yet to sell any significant volume of its electric vans or trucks, a US$65 billion valuation for Rivian could make it more valuable than Fiat maker Stellantis NV and bring it closer to legacy automakers Ford and General Motors.

Rivian has been investing heavily to ramp up production, including for its upscale all-electric R1T pickup truck which was launched in September, beating out competition from established rivals such as Tesla Inc, General Motors and Ford. – Nampa/Reuters

Musk mulls selling 10% of Tesla stock

Tesla Inc chief executive Elon Musk on Saturday asked his 62.5 million followers on Twitter in a poll if he should sell 10% of his Tesla stock.

The world's richest person had previously said he could face a "massive" tax bill this year as he has to exercise a large number of stock options coming due next year.

Musk has criticised the proposal, which would affect 700 billionaires and impose taxes for long-term capital gains on tradable assets, whether or not they have been sold.

Musk said that he will abide by the results of the poll, whichever way it goes.

The poll received near 2 million responses in seven hours after he posted it, with 55% of respondents approving the proposal to sell the shares. The poll was scheduled to end yesterday.

Musk's shareholding in Tesla comes to about 170.5 million shares as of June 30 and selling 10% of his stock would amount close to US$21 billion based on Friday's closing, according to Reuters calculations. – Nampa/Reuters

Boeing directors agree on settlement

Boeing Co current and former company directors have reached a US$237.5 million proposed settlement with shareholders to settle a lawsuit over the board's safety oversight of the 737 MAX aircraft, documents released on Friday show.

Following two fatal 737 MAX crashes in the space of five months in 2018-19 that killed 346 people, Boeing's best selling plane was grounded for 20 months and returned to service after the company made significant software and training improvements.

The proposed agreement, which is being filed in Delaware Chancery Court late on Friday and was confirmed by Boeing, will require the election of an additional board director with aviation/aerospace, engineering, or product safety oversight expertise within one year.

Under the settlement, Boeing would amend its bylaws to require the separation of the CEO and board chair positions, create for at least five years an ombudsperson program to provide Boeing employees conducting airplane certification work for the Federal Aviation Administration with a way to raise work-related concerns.

The settlement would also require Boeing to provide annual public reports on safety related enhancements implemented by the planemaker since the MAX air disasters. – Nampa/Reuters

Marriott rides leisure travel demand

Marriott International Inc topped estimates for third-quarter revenue and profit as a strong rebound in leisure travel helped counter a hit from fresh restrictions in Asia caused by the Delta variant.

Occupancy rates in most major markets improved from pandemic lows with vaccinations and the reopening of economies encouraging more people to travel, but China's zero Covid-19 policy had an impact.

The recovery in Greater China has been choppier, but globally leisure travel remained very strong throughout the quarter, chief executive Anthony Capuano said.

Excluding items, the company earned 99 cents per share in the third quarter, beating expectations of 98 cents.

Revenue rose 75% to US$3.95 billion, topping estimates of US$3.81 billion. – Nampa/Reuters

Diageo to build US$75 mln distillery

Diageo said it is building a US$75 million distillery in China to make its first ever single-malt whiskey of a Chinese origin, as it looks to tap into the spirit's growing demand in the world's largest beverage alcohol market.

Located in the country's southwest Yunnan province, the 66 000 square meter distillery will source water from the Erhai lake and will begin construction next year.

Single malts are one of the few drinks that Chinese consumers enjoy at home or in small groups, with volumes rising 20% in 2020, wine and spirits consultancy IWSR said, adding that it is also a preferred tipple among its large population of millennial consumers.

Covid-19-driven restrictions on foreign travel have also saved people money and driven a growing fondness for high-end spirits.

In July, the Johnnie Walker whisky maker reported that double-digit growth in scotch whiskeys contributed to a 38% jump in net sales in Greater China in its fiscal 2021 ended June 30.

"The demand for whisky is growing rapidly among middle-class consumers who are keen to further discover and enjoy fine whiskies," Sam Fischer, president, Diageo Asia Pacific and Global Travel said in a statement. – Nampa/Reuters

Comments

Namibian Sun 2024-11-22

No comments have been left on this article

Please login to leave a comment

Katima Mulilo: 23° | 38° Rundu: 24° | 35° Eenhana: 23° | 35° Oshakati: 25° | 34° Ruacana: 24° | 35° Tsumeb: 22° | 33° Otjiwarongo: 20° | 32° Omaruru: 22° | 36° Windhoek: 21° | 33° Gobabis: 23° | 34° Henties Bay: 15° | 19° Swakopmund: 15° | 16° Walvis Bay: 14° | 23° Rehoboth: 21° | 34° Mariental: 21° | 36° Keetmanshoop: 18° | 36° Aranos: 22° | 36° Lüderitz: 15° | 26° Ariamsvlei: 18° | 36° Oranjemund: 14° | 22° Luanda: 24° | 25° Gaborone: 22° | 36° Lubumbashi: 17° | 34° Mbabane: 18° | 32° Maseru: 15° | 32° Antananarivo: 17° | 29° Lilongwe: 22° | 35° Maputo: 22° | 36° Windhoek: 21° | 33° Cape Town: 16° | 23° Durban: 20° | 26° Johannesburg: 18° | 33° Dar es Salaam: 26° | 32° Lusaka: 22° | 36° Harare: 20° | 31° #REF! #REF!