Rivian’s Upsized IPO Could Be the Biggest Since Facebook

Rivian Automotive opened Wednesday (Nov. 10) on Nasdaq under the ticker symbol RIVN, floating 153,000,000 shares of Class A common stock at an initial public offering price (IPO) of $78 per share. The offering is expected to close on Nov. 15.

Its stock jumped 29% to close at $100.73 for the day. In after-hours trading, it gain more and was trading at $106.50.

The gross proceeds from the offering before expenses and commissions are anticipated to be about $11.9 billion. Rivian has granted the underwriters a 30-day option to buy up to 22.95 million shares at the IPO price, according to a press release.

The offering is the sixth-largest U.S. IPO ever and could be the biggest since Facebook raised $16 billion in 2012, according to media reports.

See also: Electric Vehicle Maker Rivian Drives Toward IPO With Amazon Owning 20%

Amazon holds a 20 percent stake in the electric truck maker, with Ford holding a stake of slightly more than 5 percent. Rivian has a deal to deliver 100,000 vehicles to Amazon by 2025.

Founded in 2009 and headquartered in Irvine, California, Rivian is seen as a possible rival to Tesla, and has raised over $10.5 billion at an estimated $80 billion valuation. It started producing and delivering vehicles in September.

The company will produce an estimated 1,200 vehicles by the end of 2021 at its plant in Normal, Illinois. The company lost nearly $1 billion in the first six months of this year, and estimates that annual production will reach about 150,000 vehicles at its main facility by late 2023, Bloomberg reported.

Read more: Amazon Rolls Out First EV Delivery Vans With Rivian As Part Of Climate Pledge

Rivian is producing three vehicles: an upscale pickup truck for off-roading; a sport utility vehicle; and a delivery van that was developed with Amazon.

By the end of October, Rivian had delivered 156 of its pickups, known as the R1T, with plans to begin delivering the R1S, its SUV, next month. It said in a financial filing that it did not expect to fulfill the 55,400 orders for the truck and SUV until the end of 2023.

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Lead book-running managers are Morgan Stanley, Goldman Sachs & Co. LLC and J.P. Morgan. Barclays, Deutsche Bank Securities, Allen & Company LLC, BofA Securities, Mizuho Securities and Wells Fargo Securities are acting as additional book-running managers.