Rivian had the largest IPO for a US company since Facebook

  • Rivian made its US stock market debut today, offering 153 million shares at $ 78 per share, more than initially anticipated.
  • Rivian’s IPO is the largest globally this year, and the estimated $ 11.9 billion raised makes it the largest IPO for an American company since Facebook.
  • This despite a recent lawsuit for wrongful dismissal in which a former Rivian executive raised concerns about Rivian’s ability to meet sales targets and make money based on its current pricing structure.

    The electric upstart Rivian recently began deliveries of its first production vehicle, the R1T, beating on the market the Long-delayed Tesla Cybertruck and pickups from legacy automakers such as ford Other General Motors. With the R1T now out, Rivian made its highly publicized debut on the US stock market, valuing its initial public offering of 153 million shares at $ 78 per share.

    Electric van prototype that Rivian plans to build for Amazon

    Rivian / Amazonia

    Rivian, backed by giants including Amazon and Ford, was initially expected to price its shares between $ 57 and $ 62 before increasing that range last week to between $ 72 and $ 74 per share. The new $ 78 figure helped Rivian raise about $ 11.9 billion, making it the largest IPO for an American company since Facebook earned $ 16 billion when it went public in 2012. Rivian’s IPO is the largest in the world this year and the twelfth largest of all time, as reported by CNN Business. According to Wall Street newspaper, Rivian will have an initial valuation of $ 77 billion, making it nearly as good as one of its main financiers, Ford.

    Ahead of the IPO, Amazon – along with investment firms T. Rowe Price and Franklin Templeton – have been listed as part of a group of “anchor investors” who are expected to buy up to $ 5 billion in stock. Rivian’s IPO is underwritten by Morgan Stanley, Goldman Sachs and JP Morgan, and the electric truck maker will be listed on Nasdaq under the ticker “RIVN”.

    Rivian’s S-1 filing made prior to its stock exchange debut said the company plans to deliver 1,000 vehicles by the end of 2021, albeit in a recent lawsuit for wrongful dismissal, a former employee claimed that the company is unable to dial that number. In that same lawsuit, executive, Vice President of Sales and Marketing Laura Schwab, raised concerns that Rivian’s prices weren’t high enough and that the company would lose money on every vehicle sold. which would raise prices after the IPO. Currently, the R2T starts at $ 68,145.

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