Rivian raises $12 billion in record IPO

On Wednesday, Rivian (RIVN), an innovative, Nasdaq-listed automotive technology company, raised $12 billion and set the record for the largest initial public offering (IPO) in the United States in 2021 and the 7th largest IPO in the United States to date. . The electronic vehicle (EV) automaker lists just weeks after Volvo Cars raised $2.9 billion with a promise to go fully electric by the end of the decade.

“Rivian, as a true technology company, was founded with a mission to decarbonize the world through sustainable electric vehicles. After years of incredible hard work and research, coupled with a commitment to make a difference, this mission has become a reality,” said Nelson Griggs, Chairman of the Nasdaq Stock Exchange.

Rivian’s listing makes Nasdaq the home of both the largest U.S. IPO in 2021 and the largest direct listing with Coinbase (COIN). The capital raised adds to Nasdaq’s already growing IPO momentum, building on more than 660 listings through traditional IPOs, Special Purpose Acquisition Companies (SPACs) and direct listings, raising over $150 billion.

With the original intention of creating a sports car, Rivian in 2018 turned to manufacturing e-pickup trucks and sport utility vehicles (SUVs), planning to bring electric vehicles to one of the fastest growing automotive segments. popular in the United States.

What makes Rivian a unique electric vehicle manufacturer is its “skateboard” platform for electric SUVs and pickup trucks, promising durability for off-road adventures with longer charging. Its unique platform improves the performance of large vehicles equipped with electric motors in each of the wheels.

Using the skateboard platform also helps standardize its vehicles for manufacturing, adapting the platform to different car models. The company has several top backers, including Ford (F) and Amazon (AMZN). Amazon itself is looking to roll out all-electric trucks made by Rivian with an initial order of 100,000 electric delivery vehicles.

Driving Rivian’s EV innovations is the tailwind of EV enthusiasm in the market. The promise of exponential growth is driving shares of electric automakers higher, as seen with established automakers like Tesla (STLA), which grew from $75 billion to $1.1 trillion in just two years.

True to Rivian’s core mission of fostering a sustainable planet, they donate 1% of their capital to a Forever fund, dedicated to the fight against climate change.

“This truly incredible philanthropic initiative is dedicated to solving the planet’s climate crisis and preserving essential biodiversity for future generations,” Griggs said.

Rivian CEO RJ Scaringe praised the company’s current success and its future as a leading electric vehicle manufacturer at the feet of Rivian’s dedicated employees.

“Ultimately, our success will depend entirely on how well we work together and how well we continue to integrate diverse viewpoints, treat each other with empathy, reach out for inspiration, and stay open to new ideas,” Scaringe said.


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