By
Tolu Ajiboye
December 14th, 2023
EV carmaker Rivian automotive makes a stellar debut on Wall Street with its shares skyrocketing 30% on the first day of listing.
Although the broader market remained under pressure on Wednesday, November 10, EV maker Rivian automotive made a high-profile entry to Wall Street. In a blockbuster debut, the stock of Rivian Automotive (NASDAQ: RIVN) gained a staggering 29.14% closing above $100 levels.
Through its Initial Public Offering (IPO) Rivian raised a total of $11.9 billion by selling a total of 153 million shares at $78. Previously, the startup had filed to offer 153 million shares in the price range of $57-$62. However, it raised the price to $74 earlier this month citing strong market demand.
The blockbuster listing has helped the EV maker move past some of the biggest companies like
As per its prospectus, Rivian has reserved 7% of its IPO shares for DSP participants. Also, the eligible investors fell into two categories. One was company officers, directors, and their affiliates. The other was people who reserved either an R1S or an R1T electric truck as of Sept. 30.
The program follows a similar move by other companies like Airbnb and Uber who have kept aside shares for their stakeholders. However, what sets Rivian apart is that the company still doesn’t have real customers as of now. Besides, they have a backlog of 55,400 pre-orders, as of Oct. 31.
Despite this, Rivian (RIVN) has emerged as one of the hottest investments in the EV space. Some of Wall Street’s biggest institutional players are considering Rivian as the next big player in the sector after Tesla.
Rivian (RIVN) Specializes in Pick Up Trucks and SUVs
Fouded a decade back in 2009, Rivian has positioned itself for specializing in pickup trucks and SUVs. Since 2019, the company has also raised a total of $10.5 billion in funding. It also includes the @.5 billion funding round in July this year led by Amazon’s Climate Pledge Fund.
As of now, Amazon’s stake in the company stands at $16.1 billion. Automobile giant Ford is also one of the leading investors in Rivian with its stake at around $10.3 billion.
One such DSP investor Rajiv Patel has made a $1000 deposit earlier this year on a Rivian electric SUV. His prebooking of the Rivian R1S allowed him to participate early in the IPO round as part of the company’s direct share program (DSP).
Patel purchased a maximum of 175 shares for $13,650 at the $78 IPO price. On Day 1, Patel’s earnings stood 30% higher at $17,628.