RIVN Stock IPO: 10 Things to Know as Rivian Starts Trading Today

One of the most anticipated initial public offerings of the year takes place today as Rivian Automotive makes its market debut.

A Rivian (RIVN) sign out front of an Illinois manufacturing plant.

Source: James Yarbrough / Shutterstock.com

So what do investors need to know?

The electric vehicle maker priced its IPO at $78 today, giving the company a valuation of $66.5 billion. That is not the only eye-catching number, either. Based on its IPO price, Rivian will raise $11.9 billion from its debut.

One of the other basic details for investors to note is that the RIVN stock IPO will see shares trading on the Nasdaq. Be ready for the stock to take off once it starts trading.

As investors get ready to grab shares of the company, we look at several important things investors should know about Rivian Automotive.

10 Things to Know About the RIVN Stock IPO:

  1. Rivian’s market debut is one of the top 10 IPOs of all time in the United States, according to data from Dealogic.
  2. Just how big is this IPO? At its $78 IPO Price, Rivian is already rivaling Ford (NYSE:F) and General Motors (NYSE:GM) in terms of market capitalization. Investors should consider that Rivian is also in a much earlier stage of commercialization than its legacy rivals.
  3. Investors have also been paying close attention to Rivian’s big backers. Amazon (NASDAQ:AMZN) holds a more-than-20% stake in the company, and Ford is also a top investor.
  4. Rivian has been exciting ahead of its debut, but it has a long way to go financially. It plans to lose $1.28 billion this quarter on revenue of up to $1 million.
  5. So are investors still keen on the RIVN stock IPO? The reason seems to be its backlog of 55,400 preorders for its R1T and R1S vehicles.
  6. Some of these preorders come from Amazon, which has ordered 100,000 electric delivery vehicles. A portion of these should be delivered and in use by 2022.
  7. How will it get there? Rivian says its Illinois factory can generate 150,000 vehicles each year.
  8. Additionally, it has 6,000 employees as of June 2021.
  9. Investors are largely betting on big growth ahead. At its roadshow, Rivian said it is “doubling down on production” of its R1T pick-up truck. As it further ramps production, pay close attention to RIVN stock.
  10. Rivian also plans to build a charging network in the U.S. and Canada.

On the date of publication, Joel Baglole did not hold any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2021/11/rivn-stock-ipo-10-things-to-know-as-rivian-starts-trading-today/.

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