RIVN went public at $78.00 on Nov. 10, 2021

Rivian Automotive Inc. (RIVN) designs and manufactures electric vehicles (EVs) and accessories and offers related services. The company produces and has begun delivery of its first-generation consumer vehicle, which is a two-row, five-passenger pickup truck named the R1T. Later this year it plans to begin delivering a three-row, seven-passenger SUV named the R1S. These vehicles are equipped with a set of advanced technology systems and are designed to accommodate consumers with active lifestyles. Rivian also plans to launch an electric delivery van (EDV) for business customers.

Rivian’s stock debuted on public markets on Nov. 10, 2021 through a highly-anticipated initial public offering (IPO). As many as 153 million shares were sold at an initial offering price of $78.00, valuing the company at $66.5 billion. The offering raised nearly $12 billion in financing to fuel growth. The shares began trading on the Nasdaq under the symbol “RIVN” at an opening price of $106.75. The stock closed the day trading at $100.73 per share, giving the company a valuation of approximately $86 billion. That’s more than the market capitalization of Ford Motor Co. (F), one of Rivian’s major financial backers.

Key Takeaways

  • Rivian is an EV manufacturer and provides related accessories and services.
  • Rivian went public under the ticker “RIVN” on Nov. 10, 2021 at an initial offering price of $78.00.
  • The company sold 153 million shares, raising nearly $12 billion.
  • Rivian’s market value was $127.3 billion at the close of trading on Nov. 12, 2021, three trading days after its IPO.
  • The company estimates that it generated $0 to $1 million in sales and a net loss of between $1.2-$1.3 billion in the quarter ended Sept. 30, 2021.
  • Traditional automaker Ford and e-commerce giant Amazon are among Rivian’s major shareholders.

Rivian is based in California and was founded in 2009 by Robert J. Scaringe. A graduate of the Massachusetts Institute of Technology, he is the company’s chief executive officer (CEO) and chairman of the board of directors. Scaringe, known as “R.J.” in the industry, highlighted his long-time obsession with cars in a letter filed with the company’s IPO prospectus. Scaringe started his company with the goal of building an efficient sports car. But by 2012, he and the Rivian team concluded that their initial strategy would not meet their goals, and they changed course. They redefined the company’s strategy, refocusing their efforts on the truck, SUV, and crossover segments of the automobile market. Rivian also forged a close business relationship with e-commerce giant Amazon.com Inc. (AMZN) to develop delivery vans and a fleet management platform.

Source: TradingView.

Why the Rivian IPO Matters

Rivian’s IPO raised nearly $12 billion, making it the largest IPO in the U.S. since 2014. The stock was up more than 21% from its initial opening price to the close of trading on Nov. 12, 2021, three trading days after the IPO. The broader U.S. equity market, as measured by the S&P 500, was basically flat over the same period. The size of the IPO and the rapid

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