Electric truck maker Rivian began trading on the Nasdaq on Wednesday, under the ticker RIVN, after bidding for the largest IPO on this side of the Atlantic since Facebook’s stock market debut in May 2012. Unlike the social network at the time, the company projects revenue of between zero and $1 million in the third quarter. His losses could amount to 1,280 million dollars, as reported to the Securities and Exchange Commission (SEC) of the United States.
Rivian’s share started at $106.75 (more than 40% above the fixed price), which offered the entity a market value of more than $90 billion, thus surpassing the capitalization of veterans such as General Motors or Ford. At the close on Wall Street, its shares rose more than 29%, valuing Rivian at $98 billion.
Largest IPO in the US since 2012
Rivian priced its shares at $78 late Tuesday to raise about $11.9 billion. The company is backed by Amazon and Ford and has drawn a lot of interest from investors looking to cash in on the electric vehicle market beyond Tesla.
Amazon’s stake is up to 20% and it has ordered a total of 100,000 vehicles from Rivian that should start delivering from 2025. Ford has a 12% stake.
The truck and van maker has a preorder backlog of 55,400 vehicles for its R1T and R1S models in North America, which it plans to deliver by the end of 2023. Rivian currently has a plant in Normal, Illinois, and has announced plans for a second, whose location has not yet been provided. It also has in mind to open factories in Europe and China.
So far this year, US IPOs have raised more than $181.2 billion
Rivian was founded in 2009. Morgan Stanley, Goldman Sachs, JP Morgan, Barclays, Deutsche Bank, Allen & Company, BofA Securities, Mizuho Securities and Wells Fargo Securities have been the joint managers of its Public Sale Operation (OPV).
Other manufacturers in the sector, such as Lucid Motors, have a capitalization of 72.5 billion dollars, despite the fact that the company has just started producing its first cars. Nikola’s market value even surpassed Ford’s last year, even though the company had no revenue. However, at the moment, the latter is worth less than 6,000 million dollars, after the accusations of fraud against its founder, Trevor Milton.
So far this year, US IPOs have raised more than $181.2 billion, nearly doubling the level raised in 2014, when Alibaba debuted. The companies that have debuted on the market this year have registered an average increase of 29.6% during their first day of listing and accumulate an average return of 14%.
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