Rivian valued at over $ 100 billion when it debuts after world’s largest IPO of 2021
Nov. 10 (Reuters) – Shares of Rivian Automotive Inc (RIVN.O) jumped up to 53% on its Nasdaq debut on Wednesday, giving the Amazon-backed electric vehicle maker a market valuation of over $ 100 billion. dollars after the world’s largest first public offering this year.
Rivian stock closed at $ 100.73, jumping nearly 30% from its offer price.
This made Rivian the second most valuable U.S. automaker after Tesla Inc (TSLA.O), which is worth $ 1.06 trillion. Despite just starting to sell vehicles and having little revenue to report, Rivian ranks ahead of General Motors Co (GM.N) at $ 86.05 billion, Ford Motor Co (FN) at 77. , $ 37 billion and Lucid Group (LCID.O) at $ 65.96 billion. . Read more
Rivian is also struggling to ramp up production in Illinois as supply chain constraints hit automakers around the world. Last July, the electric vehicle maker said COVID-19 and its impact on suppliers had delayed the launch of vehicles outside Illinois. Read more
Since last year, electric vehicle companies have become one of the most prominent investments. Including securities such as options and restricted stock units, Rivian’s fully diluted valuation topped $ 106 billion at its first price.
The IPO allowed Rivian to raise around $ 12 billion to fund the growth, and that number could reach $ 13.7 billion if the full equity over-allotment is exercised. This makes it the largest IPO in the United States since the IPO of Alibaba Group Holding Ltd (9988.HK) in September 2014.
“The transition to a public company (and) the growth of our capital base” allows Rivian to develop “promising products and volume and growth in terms of new segments and new vehicles in which we will enter”, RJ Scaringe, Managing Director of Rivian. said in an interview.
Wall Street’s biggest institutional investors, including T. Rowe Price (TROW.O) and BlackRock (BLK.N), are betting on Rivian to be the next big player in an industry dominated by Tesla Inc (TSLA.O) in a context of increasing pressure on car manufacturers in China and Europe to eliminate vehicle emissions.
Amazon.com Inc (AMZN.O) is Rivian’s largest shareholder with a 20% stake. Read more
Rivian’s IPO comes against the backdrop of the United Nations Climate Summit, where automakers, airlines and governments unveiled a series of commitments to reduce greenhouse gas emissions from global transport.
GM CEO Mary Barra said Wednesday that Rivian’s IPO shows just how undervalued her company is.
“What this highlights for me is the huge opportunity,” she said at an event with The New York Times. “General Motors is so undervalued.”
Rivian has invested heavily to ramp up production, doubling its all-electric premium R1T pickup truck launched in September. He plans to follow that up with an SUV and a delivery van, hitting some of the hottest segments of the market.
The Irvine, Calif.-Based company plans to build at least one million vehicles a year by the end of the decade, Scaringe said. It has a plant in Illinois and has announced its intention to open a second plant in the United States and eventually to locate production in China and Europe. Read more
“Rivian is in the early stages of delivering its first vehicles to customers, indicating to investors that the company and the vehicles are ‘real’ and not just pictures in a slideshow,” said Michael Shlisky, analyst at DA Davidson & Co. “This has been an issue with other EV companies in recent months.”
On Wednesday, 10 environmental and rights groups, including Sierra Club and Greenpeace, urged Rivian to engage with unions as the business grows. Workers at the Rivian, Illinois plant are not unionized.
Founded in 2009 as Mainstream Motors by Scaringe, the company was renamed in 2011 as Rivian, a name derived from “Indian River” in Florida, a place Scaringe used to frequent in a rowboat in his youth.
Scaringe will own all of the outstanding Class B common stock after the IPO and will get 10 votes per share, Rivian said in a filing.
Rivian, also backed by Ford, valued an IPO of 153 million shares at $ 78 per share, raising nearly $ 12 billion, making it one of the largest IPOs in the United States. all time. Read more Ford declined to reveal plans for its roughly 12% stake in Rivian, which was worth around $ 10 billion on Wednesday.
Amazon, T. Rowe Price, Franklin Templeton, Capital Research and Blackstone are among a group of “pillar investors” who are expected to buy up to $ 5 billion in shares, according to the filing.
Rivian shares have also been offered to retail investors on Social Finance Inc (SoFi).
Morgan Stanley, Goldman Sachs and JP Morgan were the main underwriters of the offer.
Reporting by Noor Zainab Hussain in Bangalore and Ben Klayman in Detroit; Additional reporting by Echo Wang in New York, Paul Lienert in Detroit, Niket Nishant, Tiyashi Datta and Sanjana Sitara Shivdas in Bengaluru and Hyunjoo Jin in San Francisco; Editing by Arun Koyyur, Anil D’Silva and Richard Chang
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