Electric Truck Developer Rivian Automotive IPO Soars To $85 Billion on Debut

Electric truck developer Rivian Automotive raised $11.9 billion to become the largest IPO of 2021, and the largest IPO since Alibaba (NYSE: BABA) in 2014. RIVN reached a high of $119.38 and closed at $100.73/share when markets closed

Electric truck developer Rivian Automotive raised $11.9 billion to become the largest IPO of 2021, and the largest IPO since Alibaba (NYSE: BABA) in 2014. RIVN reached a high of $119.38 and closed at $100.73/share when markets closed

Rivian truck

Rivian Automotive listed on the Nasdaq under the symbol RIVN.

Electric truck developer Rivian Automotive (RIVN) Goes to Public

Rivian Automotive is a founder-led company and manufactures premium electric SUVs, vans, and pickup trucks, raised $11.9 billion by offering 153 million shares at $78, above the upwardly revised range of $72 to $74.

The company offered 18 million more shares than anticipated. It originally planned to offer its shares at $57 to $62, before raising the range this past Friday. New and existing investors had indicated on $5 billion worth of shares in the offering (42% of the deal).

At $11.9 billion, Rivian is now the largest IPO of 2021, and the largest IPO since Alibaba (NYSE: BABA) in 2014.

Although the company is in very early stages of commercialization, Rivian began its first deliveries in September of 2021, Rivian is the first automaker to bring a battery-electric pickup to market in the U.S.  It’s also on track to make the most of its first-mover advantage when it starts deliveries of the R1S sport utility vehicle this year, giving it a lead in the market for full-size battery-electric SUVs.and has an order of 100,000 EDVs from Amazon through 2025 the internet giant owns a 20 percent stake in Rivian.

Day 1 for Rivian began trading at $106, up 36% from its offering price of $78 a share $RIVN reached a high of $119.38 at 10:15 a.m. PT/1:15 p.m. ET, and was at $100.73/share when markets closed at 1 p.m. PT/4 p.m. ET.

RIVN Day 1

In September, Rivian began making deliveries of its first generation consumer vehicle, the R1T, a two-row five-passenger pickup truck priced at around $70,000. The company also plans to launch the R1S, a three-row seven-passenger SUV, in December 2021. At quarter-end, it had approximately 48,000 preorders for the consumer vehicles with $1,000 refundable deposits. In the commercial market, Rivian collaborated with key investor Amazon.com to develop an electric delivery van with an initial order volume of 100,000 vehicles.

The IPO was run by Morgan Stanley, Goldman Sachs, J.P. Morgan, Barclays, Deutsche Bank, Allen & Company, BofA Securities, Mizuho Securities, and Wells Fargo Securities who acted as joint bookrunners on the deal.

The market cap of Rivian was over $85 Billion on Day 1, making it the third biggest auto maker in the US.

Rivian Day 1 Market Cap

While demand for Rivian’s products will likely outweigh supply for a number of years, the company faces a “natural ceiling” of 300,000 to 400,000 units per year, New Street Research analyst Pierre Ferragu wrote in a note Monday.

That’s partly down to price: Rivian’s R1T truck starts at $67,500 for the most basic model, while its upcoming sport utility model is $70,000. “Above $70,000, the global addressable market for Rivian’s SUV and pickup is less than 1.5 million units, and it will be a crowded space,” Ferragu wrote.

 

IPO Ahead W 11 5 2021

 Source: Renaissance Capital

From The TradersCommunity News Desk

2 thoughts on “Electric Truck Developer Rivian Automotive IPO Soars To $85 Billion on Debut”

  1. TradersCom says:

    Crazy days
    Rivian moves above Ford and GM to be US No.2 Behind Tesla
    $RIVN 172.01 ▲ 22.65 (15.16%)
    Mkt Cap 146.70 B
    General Motors Co
    $GM 62.61 ▼ 0.36 (0.57%)
    Mkt Cap 90.90 B
    Ford Motor
    $F 19.79 ▼ 0.075 (0.38%) Irrational?

  2. TradersCom says:

    Rivian Automotive IPO ramp unplugged?
    Continued to come back down to earth
    $RIVN $123.38 ▼ 22.69 (▼15.53%) Update

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