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Rivian Raises Biggest IPO of 2021

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Rivian raised 11.9 billion – the biggest initial public offering of the year – and the sixth-largest ever on a US exchange. The California-based EV maker announced it sold 153 million shares at $78 per share, quite above their original expectations. As of November 2021, Rivian’s shares began trading in New York under the RIVN ticker symbol.

“Rivian is now valued at about $76.4 billion on a fully diluted basis that accounts for stock options. For comparison, in January the company had a valuation of $27.6 billion after a $2.65 billion funding round.”

Bloomberg estimates that as much as $5 billion of the IPO shares are set to be bought by Rivian’s biggest investors such as Amazon, T. Rowe Price, Coatue Management, and many more. Rivian plans to allocate up to 7 percent of its shares to eligible US customers who had pre-orders for their vehicles as of September 30. 

The IPO comes after Rivian started deliveries of their R1T electric pickups to customers (mainly employees) in September, coupled with the news that the company will only make about 1,200 vehicles by the end of 2021. Rivian estimates that annual production will reach 150,000 vehicles at its main factory in Illinois by late 2023.

Rivian lost nearly $1 billion in the first half of the year compared with a $377 million deficit a year earlier, but things seem to be looking up for the EV carmaker.