Rivian Automotive set for blockbuster New York listing

Electric vehicle manufacturer Rivian Automotive will start trading on the US NASDAQ tomorrow, with its shares trading under the ticker RIVN.

In what has been described as the biggest initial public offering (IPO) by a US company since Facebook in May 2021, the guide price per share is $72-$74. If the guide price is reached, Rivian would be valued at around $65 billion.

The IPO comes just a few months after Rivian began producing its electric vehicles and the company only expects to ship just over 1,000 this year.

Industry Reaction

Susannah Streeter, Senior Investment and Markets Analyst, Hargreaves Lansdown ‘’Rivian is the latest electric vehicle start-up with ambitions to swerve into the fast lane in terms of EV sales.

“The US company is charging up for an eye-watering valuation of around $65 billion when it lists on the Nasdaq exchange, on Wednesday after it upped the guide price per share to between $72-$74. Such a price tag would mean it will rival Chinese EV maker NIO in terms of its valuation, a company that has already surpassed 10,000 in monthly sales.

“Rivian is still in a much lower gear in terms of units sold but aims to stand out from the EV crowd with a focus on pick-up trucks and SUVs, and has more than 48 thousand pre-orders for its initial models.

“The shares are due to start trading at 14:30GMT, but it can take several hours to get a live market price. During this period of time, it won’t be possible to buy or sell shares. Investors will be able to deal the shares through the Hargeaves Lansdown (HL) platform once there is a live market price, and trading and settlement has been confirmed by the UK clearing and settlement service.

“Investors should be aware that the global EV market is highly competitive and Rivian is faced with a raft of rivals as the race heats up.

“Investing in an individual company is higher risk and isn’t right for everyone and investors should only hold shares as part of a well-balanced, diversified portfolio. If investors intend to trade via HL, they will need to have an account already open with available cash to invest before shares can be purchased. Clients also need to complete a W-8BEN form, for the US Treasury Department’s Internal Revenue Service.

“The advantage of buying shares via an ISA account means all returns are tax free, however IPOs shares purchased via ISA accounts can take a little longer to settle.’’

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