Rivian IPO: Electric Vehicle Maker Raises $12 Billion

Rivian IPO Pricing and Valuation

Rivian, the electric vehicle manufacturer, has set the price for its initial public offering (IPO) at $78 per share.

This valuation significantly exceeds the company’s previously targeted share price, reflecting strong investor demand for what is considered the year’s most anticipated IPO.

Details of the Offering

According to a recent regulatory filing, Rivian is offering 153 million shares of common stock at this price point.

Underwriters have also been granted an option to purchase an additional 22.95 million shares, a quantity exceeding initial expectations.

Financial Projections

The gross proceeds from this offering are projected to reach approximately $11.9 billion, excluding standard expenses like commissions and discounts.

Should the underwriters fully exercise their option to buy additional shares, Rivian could potentially raise a total of $13.8 billion.

Company Valuation

Based on the fully diluted share count, Rivian’s valuation now surpasses $77 billion.

Initial Filing and Range Adjustments

Initially, the company had planned to offer 135 million shares, with a price range between $57 and $62 per share.

Underwriters were initially allocated an option to purchase up to 20.25 million additional shares.

Due to substantial investor interest, the price range was subsequently increased to between $72 and $74.

Path to Public Trading

Rivian first filed for its IPO on October 1, seeking to become a publicly traded company in the United States.

The initial S-1 filing did not specify a target share price.

An amended filing, submitted on Monday, revealed updated information, including investment interest from both Amazon and Blackstone.

Key Investors

Several prominent investors have expressed interest in acquiring up to $5 billion worth of Rivian’s Class A common stock.

These include Amazon, T. Rowe Price Associates, Coatue Management, Franklin Templeton, Capital Research Global Investors, D1 Capital Partners LP, Third Point LLC, Blackstone Alternative Asset Management, Dragoneer Investment Group LLC, and Soros Fund Management LLC.

Amazon’s Stake

Recent filings indicate that Amazon currently holds a stake exceeding 20% in Rivian.