- Rivian will trade under the ticker symbol RIVN.
- Rivian is set to IPO tomorrow, Wednesday, November 10.
- RIVN is sure to see strong interest from retail and institutional traders.
Update: Ahead of the IPO, market participants are expecting the company to offer 135 million shares at $72-74 a share, up from prior plans of $57-$62. The automaker is expected to raise more than $9.8 billion. Trading will begin on Wednesday on the Nasdaq exchange under the ticker symbol RIVN. The result could take its toll on TESLA shares, despite Rivian is not a direct competitor.
Rivian Auto is charged up and ready to start trading on Wednesday, November 10, in what is sure to be one of the hottest IPOs in town. The stock is in the perfect hot space right now, that of electric vehicle (EV) manufacturers, with Tesla (TSLA) booming and EV cars becoming more and more mainstream. Rivian is slightly different as it targets the electric van or truck segment while also developing a sports utility vehicle the R1S and a truck, the R1T.
Rivian (RIVN) stock news
The latest news from the investor roadshow last week is obviously positive as the IPO price range has been increased substantially from a previously guided range of $57 to $62 to now sit at a range of $72 to $74. Rivian is to sell 135 million class A common stock with an option for another 20.25 million. The number of outstanding shares after the offering will be 845,033,598, or 865,283,598 if the option is exercised by the underwriters. This will raise between $9.7 to $11.2 billion, if the option is taken up, using the midpoint reference price of $73. This will give a strong valuation of about $65 billion and put it in line with many mainstream automakers.
Interestingly, it puts Rivian close to the valuation of Ford (F) who is one of its backers along with Amazon (AMZN). Getting close to Amazon’s valuation would take a bit more doing!
The shares are scheduled to price today and are due to begin trading tomorrow, according to the latest from Reuters. Reuters also adds that Amazon, T Rowe Price, Coatue Management, Franklin Templeton and Capital Research are some of the cornerstone investors and have indicated orders to buy up to $5 billion of the stock offering.
Rivian’s SEC filing on November 5 says:
- “As of September 30, 2021, we produced 12 R1Ts and delivered 11 R1Ts, and as of October 31, 2021, we produced 180 R1Ts and delivered 156 R1Ts.”
- “As of October 31, 2021, we had approximately 55,400 R1T and R1S preorders in the United States and Canada from customers who each paid a cancellable and fully refundable deposit of $1,000. Our commercial vehicles will initially consist of EDVs, and we plan to deliver 100,000 EDVs to Amazon by 2025.”
- “We began deliveries of the R1T, our first production vehicle, to customers and generated revenue for the three months ended September 30, 2021.”
- “For the years ended December 31, 2019 and 2020, we incurred net losses of $426 million and $1.0 billion, respectively, as we invested in product development and prepared for the initial launch of our vehicles in September 2021. As of June 30, 2021, our total amount of outstanding indebtedness was $3.0 million.”