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Rivian (RIVN) prices at $78 to become biggest IPO since 2014

By Kevin Donovan

12:56, 10 November 2021

Rivian IPO at factory
Rivian IPO at factory - Source: RJ Scaringe/Rivian

Rivian Automotive priced its long-awaited initial offering of stock to the public overnight at $78 a share, raising $11.9bn for the most valuable market debut since Alibaba Group in 2014. The offering values the EV pickup-truck manufacturer at over $66.5bn (£49.2bn)

The Irvine, California company sold 153 million shares, upsized from the previous 135 million share offering, initially set in the share price range of $72 to $74. Rivian becomes the largest initial public offering (IPO) to date, topping last month’s GlobalFoundries offering.

Shortly after freeing to trade after 1:00 pm EST, shares jumped to $107.83 and then a session high of $119.45 within 10 minutes. before settling into a high $90s to low $100 range. The first day of trading for Rivian shares was heavy, with trading volume topping 100 million, according to Nasdaq. 

Rivian closed the session at $100.73 per share, up 29.1%. The closing share price gives Rivian a market capitalization topping $98.6bn. 

Shares for IPO underwriters

Goldman Sachs, JPMorgan Securities and Morgan Stanley acted as joint-lead managers on the offering, with an additional 15 underwriters acting as co-managers. As part of the offering, the underwriting group was allocated an additional 2.7 million shares with the option to purchase within 30 days at the IPO price.

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Overnight fee time 22:00 (UTC)
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EUR/USD

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AUD/USD

0.65 Price
+0.490% 1D Chg, %
Long position overnight fee -0.0070%
Short position overnight fee -0.0012%
Overnight fee time 22:00 (UTC)
Spread 0.00006

A group of cornerstone investors, including Amazon, T Rowe Price, Coatue Management, Franklin Templeton, Capital Research Global Investors, D1 Capital, Third Point Capital, Blackstone, Dragoneer Investment Group and Soros Fund Management have pre-ordered $5bn of the shares, according to records filed with the US Securities & Exchange Commission.

Amazon and Ford holdings in Rivian

Amazon recently disclosed a 20% equity stake in Rivian and has a standing order for 100,000 electric delivery vehicles. Ford Motors also has an equity stake of undisclosed size in Rivian, as well as owning roughly $415m in senior unsecured convertible notes.

Company executives were granted 66.7 million stock options from a 2015 long-term incentive plan, with a $11.90 strike price, according to the Form S-8 filed Wednesday with the US Securities & Exchange Commission.

Rolling off the production line

Rivian recently began delivery of its R1T model truck and plans to start delivering its R1S model in December. Of Amazon’s order, 10 are scheduled for delivery in the fourth quarter.

Additionally, Rivian plans to allocate 8.2 million shares of its equity towards an environmental initiative, named Forever, focusing on sustainable consumption and natural resource stewardship programmes. At the IPO price that equates roughly $640m.

Read more: EV truck maker Rivian targets reported bn IPO valuation

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