Rivian is set to start trading as RIVN stock tomorrow, Nov. 10. The electric automaker has attracted hype from retail and private investors alike, and is expected to raise close to $10 billion from the issuance of 135 million shares to the public.
So what else do you need to know?
Based on its latest filings, Rivian will start trading at a price range between $72-$74, although investors should brace for volatility either way. Privately, Rivian has raised over $11 billion at an estimated $27.6 billion valuation. Since 2019, it has raised $10.5 billion, highlighting the increasing popularity and acceptance of electric vehicle investments. The last funding round for Rivian was worth $2.5 billion and was led by Amazon (NASDAQ:AMZN), among others, earlier this year.
Beyond Amazon, who else is backing Rivian in a big way? And why should investors be paying attention ahead of the RIVN stock IPO?
Who Backs Rivian Ahead of the RIVN Stock IPO?
- Amazon, pre-IPO ownership of 22.4%. The e-commerce giant owns the largest private stake in Rivian. It initially invested $1.345 billion into the EV maker, then purchased another $490 million of convertible notes. After the IPO, Amazon can convert these notes into Class A shares, pending certain conditions. At the midpoint IPO price of $73, Amazon’s stake would be worth a whopping $11.7 billion. Also of note is the fact Amazon has preordered 100,000 electric delivery vehicles to add to its shipping fleet, and Rivian has stated that all of these vehicles will be delivered no later than 2025.
- T. Rowe Price, pre-IPO ownership of 18.8%. T. Rowe Price (NASDAQ:TROW) was an early investor in Rivian and has led and participated in several private funding rounds. The global investment firm has a proven track record of successful investments, and its large stake in Rivian lends credibility to the EV company.
- Oryx Global/Abdul Latif Jameel, pre-IPO ownership of 15.9%. Oryx Global is a subsidiary of Abdul Latif Jameel, a family-owned conglomerate and investment group based in Saudi Arabia. The group has previous investments in the automobile and clean energy industry and has worked with other automobile producers, such as Lexus.
- Ford, pre-IPO ownership of 14.4%. Interestingly enough, the legacy U.S. automaker has a massive stake in Rivian. It seems the company has its eyes set on the future of transportation, and electric vehicles certainly fit that description. Ford (NYSE:F) has released its own line of electric vehicles, but its investment proves that the company sees potential in Rivian.
The Bottom Line on Rivian
With a global total addressable market (TAM) of $9 trillion, the future potential for Rivian is limitless. However, Tesla (NASDAQ:TSLA) is clearly the leader in the EV space, and Rivian has lots of catching up to do in terms of sales and customer loyalty. Like Tesla, Rivian’s direct-t0-consumer (DTC) business model aims to bypass car dealers and saves money.
On the date of publication, Eddie Pan did not have (either directly or indirectly) 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.
