New companies are popping up everyday and these companies are always in need of funding and the best way to secure the required funds is to go public and raise an IPO on the stock exchange, of their respective country.
Something we have seen quite recently with many Indian tech companies such as the fintech company Paytm or the e-commerce giant Nykaa listing their IPOs on the Indian stock exchange. Like so, the same method of listing a company’s IPO to raise funds has now helped Amazon backed EV startup Rivian raise around USD 12 billion after it went public last Wednesday.
Rivian’s IPO, said to be the sixth-largest IPO ever on a US stock exchange, according to Bloomberg, priced its stock at USD 78 a share, started trading at a price of USD 107 on its first day, has skyrocketed the company’s overall valuation to nearly $80 billion with a market capitalization well above $90 billion.
Rivian, now known as the best-funded electric vehicle startup in U.S. history, has continued to gain momentum even days after its NASDAQ debut, and is trading at a closing price of around USD 150 as of Monday. This has further pushed the companies market capitalization to $146.3 billion, behind Toyota at $255.5 billion and Tesla at $1 trillion, but ahead of global giant Volkswagen at $140 billion. At the same time raising RJ Scaringe’s (founder and CEO of Rivian) estimated net worth to well above 2.6 billion.
Also Read: Tesla Might Finally Come to India
The startup is expected to make as many as 1 million vehicles per year by 2030 with vehicles the production starting by the end of this year. It is already selling its pickup truck and the next vehicle is speculated to be an electric SUV, while it is searching for a location to build a second factory in addition to the one it operates in Normal, Illinois.
What are your thoughts on Rivian’s blockbuster IPO? and do you think it can compete with Elon Musk’s Tesla? Let us know in the comments below. Until then, stay tuned to Oyprice and subscribe to our YouTube channel, or follow us on Telegram, Facebook, and Twitter.