EV maker Rivian Automotive IPO was the most successful offering in the U.S. since 2014. It went public on the Nasdaq on Nov. 10, 2021 at an IPO price of $78.00, raising nearly $12 billion. The company's shares, which trade under the ticker symbol "RIVN", closed trading on Nov. 12, 2021, at a price of $129.95, giving the company a market valuation of $127.3 billion.
|Automotive||2009||Irvine, CA, US||$ 90B|
Here’s what you need to know:
- What is an IPO?
- What is Rivian?
- How to buy Rivian IPO stock? – detailed instructions.
- Rivian IPO details – Rivian IPO date, price etc.
- What brokers provide access to the Rivian IPO?
What is an IPO?
When a private company or a startup first sells its shares to the general public, this process is known as an Initial Public Offering (IPO). An IPO means that a company's ownership is transferred from private ownership to public ownership. That is why the IPO process is called "going public".
Why go public? The primary benefit of going public is easier access to capital, but there are more reasons for that. If you want to learn more - here we answered frequently asked questions about IPOs in simple terms.
What is Rivian?
Rivian Automotive is a company that designs, develops, and manufactures electric vehicles and accessories. It offers two electric vehicles: a pickup truck and an SUV built on the R1 platform. The company also provides Rivian Cloud software applications and maintenance and support services.
Rivian Business Details and Financials Before IPO
Rivian Automotive is the EV startup backed by Amazon and Ford.
Rivian was valued at $2.67B in a funding round in January, 2021. Overall, it raised more than $8 billion since the start of 2019 from investors who expect its battery-electric pickup and SUV to gain market share in the US. Rivian is likely to be one of the highest-profile competitors to Tesla.
Rivian also has a deal with Amazon to build 100,000 custom electric delivery vans by 2030. In the near-term, the companies say 10,000 of the vans will be on the road making deliveries by 2022. Rivian will build three different models of the van, which is capable of going about 150 miles on a single charge.
Rivian has more than 3,600 employees split across offices in Michigan and California and its production facility in Illinois.
The IPO filing revealed that Rivian had 48,390 preorders for the R1T truck and R1S SUV in the US and Canada as of September 2021. The filing mentioned that Rivian has started a philanthropic mission called Forever. Also the company said in the filing it had less than $1.07B in revenue in the last year and that its 2020 loss rose to $1.02B from $426B the previous year.
Rivian Prospectus SEC S-1 form
Rivian Automotive's top competitors include Tesla, Zoox, Lucid Motors and BYTON.
Is Rivian Stock Publicly Traded?
Yes, Rivian is a public company now.
Rivian's Key People
Rivian Automotive's Founder and CEO is RJ Scaringe.
Rivian pre-IPO Investors
The company raised $2.5 billion from a group of investors led by Amazon's Climate Pledge Fund, D1 Capital Partners, Ford, and funds and accounts managed by T. Rowe Price Associates Inc.
How to Participate in Rivian IPO Before Shares Hit the Public Market
In the past, Initial Public Offerings as a profitable investment type were only available to big funds or elite customers of major brokerage firms or banks and it was hard (almost impossible) for retail investors to gain access to IPOs. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market.
Luckily, technologies and marketplaces changed the rules of the game, now average investors can participate in IPOs. Brokers adjusted accordingly, making access to IPOs more affordable now.
Step-by-Step Guide How to Buy Rivian IPO Stock at Its Offer Price
- Check the Rivian IPO details. Always Do Your Own Research (DYOR) for the company that is going for IPO first.
- Find a broker. You need a broker that can provide you access to the IPO. You can use our tool attached below that helps to match investors with available IPO brokers in your area. Just click "FIND IPO BROKERS" button below to see brokers that offer access to Rivian IPO.
- Check eligibility criteria. Each broker has its own eligibility criteria, like account minimum which can vary widely.
- Create trading account. For KYC you need to prepare your identity document (valid passport or driving license) and a document confirming the address of residence (utility bill). Note, this procedure may take 1-3 days as it's better to prepare your account in advance.
- Deposit your account. To participate in an IPO, your account must have available funds in the amount you send IPO application for. Note, this procedure may take 1-3 days as it's better to prepare your account in advance.
- Request Rivian shares. Assuming you meet the requirements for participating in this IPO, your next step will be to request a certain number of shares in the IPO. Note, you may not be allocated all the IPO shares you offer to buy.
- Wait for allocation. The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
Note: Many IPO purchases come with a lock-up period, usually 90 or 180 days. You will not be able to sell your shares until this period expires.
What Brokers Offered Access to this IPO?
How to Invest After Rivian IPO at Its Opening Price
The most conservative way to buy Rivian stock would be to wait for the IPO and buy the shares on the public stock market. You can do this through the same brokers that provide access to IPOs or a trading app. Most of them have a stock trading functionality. Though, you won’t get in at the low price offered by pre-IPO.
How is Rivian going public?
Rivian announced it will go public via a traditional initial public offering, or IPO. No SPACs here.
When will be the Rivian IPO date?
Rivian IPO date is November 10, 2021.
What will be the Rivian IPO price?
Rivian IPO price range is $78 a share.
How many Rivian shares will be available for its IPO?
153 million shares were sold at an initial offering.
What stock exchange will Rivian trade on?
Rivian is traded on Nasdaq.
What Is the Rivian Stock Ticker?
Rivian stock symbol is RIVN