After World’s biggest IPO of 2021, Rivian Shares is valued at $100 billion

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Rivian Shares value at more than $100 billion in debut

Rivian Shares rose 53 percent in its Nasdaq debut on Wednesday, giving the Amazon-backed electric vehicle maker a market valuation of more than $100 billion (about Rs 7,44,950 crore) following the world’s biggest initial public offering (IPO)this year.

The Rivian shares close at $100.73 (approximately Rs 7,500), a jump of nearly 30 percent from its offering price.

This made Rivian the second most valuable US automaker after Tesla, which is worth $1.06 trillion (about Rs 78,95,039 crore). Despite having just started selling vehicles and having little revenue to report, the Rivian ranked ahead of General Motors at $86.05 billion (approximately Rs.6,40,926 crore), earning $77.37 billion (approx. Rs. 76,274 crores), and lucid at $65.96 billion (approximately Rs 4,91,289 crore).

Rivian also has trouble ramping up production in Illinois as supply-chain constraints plague automakers globally. Last July, the EV maker said COVID-19 and its impact on suppliers had delayed the launch of vehicles from Illinois.

EV companies emerge as some of the hottest investments

Over the past year, EV companies emerge as some of the hottest investments. Including securities such as options and restricted stock units, Rivian’s fully diluted valuation exceeded $106 billion (approximately Rs 7,89,460 crore) at its first price.

The IPO allowed Rivian to raise approximately $12 billion (about Rs 89,372 crore) for development funding, and this figure would increase to $13.7 billion (about Rs 1,02,039 crore) if the full allotment of shares is exercised. could. This makes it the largest US IPO ever since Alibaba Group went public in September 2014.

“The transition to a public company [and] the increase in our capital base” enables Rivian to generate “promising products and growth in terms of volume and new segments and new vehicles that we are moving into,” said Rivian’s chief executive. RJ Scaringe said in an interview.

Wall Street’s biggest institutional investors, including T. Roe Price and BlackRock are betting on Rivian to be the next big player in the Tesla-dominated sector, amid mounting pressure on automakers to eliminate vehicle emissions in China and Europe.

Amazon is the largest shareholder of Revision with a 20 percent stake.

Rivian’s IPO comes against the backdrop of a United Nations climate summit, where automakers, airlines, and governments unveiled a number of pledges to cut greenhouse gas emissions from global transportation.

GM CEO Mary Barra said Wednesday that Rivian’s IPO only showed how undervalued her company is.

“It’s a huge opportunity for me,” she told a New York Times event. “General Motors is so underrated.”

Rivian Expansion plan

Rivian is investing heavily to boost production, doubling down on its upscale all-electric R1T pickup truck it launched in September. It plans to hit some of the hottest segments in the market with an SUV and delivery vans.

Scaring said the Irvine, California-based company plans to make at least one million vehicles a year by the end of the decade. It has a plant in Illinois and has announced plans to open a second US factory and eventually set up production in China and Europe.

“Rivian is in the early stages of offering its first vehicle to customers, which tells investors that the company and the vehicle are ‘real,’ not just the pictures in the slide deck,” said Michael Schilsky, an analyst at DA Davidson & Company. “This has been an issue with other EV companies in recent months.”

On Wednesday, 10 environmental and advocacy groups, including the Sierra Club and Greenpeace, urge Rivian to engage with labor unions as the company grows. Workers at Rivian’s plant in Illinois are not unionizing.

Rivian History

Founded as Mainstream Motors by Scaring in 2009, the company rename to Rivian in 2011. This is a name derived from the “Indian River” in Florida. A place Scaring use as a youth to own a rowboat. I come frequently.

After the scarring IPO, Rivian will hold all outstanding Class B common shares. Receive 10 votes per share, Rivian said in a filing.

Ford-back Rivian price an upsize IPO of 153 million shares at $78 (about Rs 5,800) per share. Raising nearly $12 billion, making it the largest US IPO ever. Ford on Wednesday declines to disclose plans for around 12 percent of its Rivian stake. It is value at around $10 billion (about Rs 74,481 crore).

According to the filing, Amazon, T. Roe Price, Franklin Templeton, Capital Research, and Blackstone are among a group of “cornerstone investors”. That indicates buying shares worth $5 billion (about Rs 37,239 crore).

Shares of Rivian offer to retail investors on Social Finance (SoFi).


© Thomson Reuters 2021

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