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Rivian IPO

How to trade on Rivian’s IPO

California-based electric vehicle maker and automotive technology company Rivian is due to debut on the stock market on 10 November. Find out everything you need to know about Rivian’s upcoming IPO and to how to get involved in trading on newly listed Rivian shares.

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LSE listed

10 November 2021

Rivian’s IPO date

$76bn

Rivian’s potential valuation

$78

Rivian's share price

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When is Rivian’s IPO date?

Rivian is expected to debut on 10 November 2021. It will list on the Nasdaq exchange in New York using the ticker 'RIVN'.

Stay up to date with upcoming IPOs by entering your email address into the box below. We will then notify you when Rivian stock is available to trade on our platform.

What will Rivian’s share price be?

The company will offer 153 million shares priced at $78 apiece. The company has raised $5bn over 2020 and 2021 alone, the latest fundraising round being in July 2021, when it raised $2.5bn.

Rivian is targeting a valuation of up to $76bn, as reported by Bloomberg. This is almost three times its original estimation of $27.6bn from January.

An overview of the electric vehicle sector

A major contender within the electric vehicle industry​, Rivian focuses mainly on manufacturing pick-up trucks and vans in the US.

Rivian’s IPO comes at a convenient time, as the EV industry is expanding worldwide. According to the International Energy Agency (IEA), electric car registrations increased by 41% in 2020, despite the Covid-19 crisis causing an overall slump of 16% in car sales. Government spending across the world also increased by 25% from the previous year to $14bn.

Out of the world’s top 20 vehicle manufacturers, 18 have announced plans to increase their production scale of light-duty electric vehicles for a greener portfolio. The availability of electric heavy-duty vehicles is also widening, with four major truck manufacturers indicating an all-electric future. One of Rivian’s investors, Amazon, bought 100,000 electric delivery vans in 2019, which have hit the road this year. The company’s newest electric truck, the Rivian R1T, is due to launch at some point in 2021 and previously sold out online towards the end of 2020.

How to trade on Rivian’s IPO

1. Register for an account

Choose your product between spread betting and contracts for difference (CFDs) and deposit funds to get started.

2. Learn about the IPO process

Find out how companies select underwriters, set offer amounts, choose stock exchanges and determine lock-up periods with our detailed guide.

3. Pick a trading strategy

Choose whether you want to go long (buy) or go short (sell). Please note that some trading restrictions may apply on initial trading.

4. Apply risk-management tools

IPOs can be volatile and debut at a lower price than expected on their first trading day, so you should consider using stop-loss orders to mitigate risk.

Rivian’s financials pre-IPO

As Rivian is still a privately held company, there is not a lot of information available to the public on its financials. The company currently offers two products that makes up its total sales.

Rivian R1T: a pick-up truck

Rivian R1S: a sport utility vehicle (SUV)

Both vehicles come with over 300 miles of range, a towing ability of 10,000 pounds, the ability to drive through three feet of water and an acceleration of zero to 60 miles per hour in under five seconds.

As reported by Bloomberg, Rivian is aiming to make tens of thousands of vehicles in its Illinois plant throughout 2021, even as the company experiences delays in its supply chain due to backlogs at US ports. This is an issue that has affected many other companies within the automotive sector throughout the first half of 2021.

Why may investors be interested in Rivian?

Rivian are currently at the start of an expansion push, with a second US factory in the works and has been in discussions with the UK government regarding a potential factory in Bristol. Here are some more factors as to why investors may be interested in Rivian going public:

Rivian is backed by esteemed companies such as Amazon, Ford and T. Rowe Price, which signals that it could be a promising trading opportunity in the future. These companies alone have helped to raise over $2.5bn in fundraising since 2019.

The IEA has reported a decade of rapid growth for the electric vehicle sector, with almost 10m electric cars on the world’s roads by the end of 2020. The sector is predicted to continue growing as over 20 countries have announced bans on the sales of conventional cars in favour of zero-emission vehicles (ZEVs).

Rivian is filling a spot in the EV market that no other company has yet filled: off-road vehicles such as trucks and SUVs. This gives the company an advantage over giants like Tesla, Ford and General Motors, who have announced plans for electric truck development but haven’t yet released a product.

Are there any risks to trading on Rivian’s IPO?

None of Rivian’s financial information such as revenue or profit is yet available for investors to view and it will only be released with the S1 filing when the company is about to IPO. This means that investors often have to decide quickly whether they want to trade on the IPO date.

Rivian’s models R1T and R1S will face competition from other larger competitors, such as the Tesla Cybertruck, which is scheduled for release in 2022. However, this model will most likely come with a higher price tag, so Rivian could use this to their advantage.

There is always a risk of placing an overvalued price tag on an IPO. $70bn is a large estimation for a company in such an early stage of its growth cycle, so the stock could open at a much lower price than expected.

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Who are Rivian’s competitors?

Rivian’s main competitors within the electric vehicle space include Tesla [TSLA], Lucid Motors [LCID] (which recently had its SPAC merger to debut on the Nasdaq) and NIO [NIO], as well as growing names such as Kandi Technologies [KNDI], Workhorse Group [WKHS] and Nikola Corporation [NKLA].

The EV market is highly competitive and there are constant developments from both start-up and established companies, so Rivian will need to perform well to stay afloat alongside its competitors. However, with high-profile backings and a promising valuation, it may do better than expected.

You can trade on the above competitors while you wait for Rivian stock to become available by registering for an account with us.

FAQ

Will Rivian go public?

Rivian is expected to go public at some point in 2021, which is predicted to be in September. Keep an eye out for upcoming IPO​​ news to find out Rivian’s exact IPO date.

Who are the underwriters for Rivian’s IPO?

Rivian has selected advisory services from US investment banks such as Goldman Sachs, JPMorgan Chase and Morgan Stanley, who will act as joint underwriters for the IPO.

How can I trade on Rivian stock?

To start trading on Rivian stock via spread bets and CFDs, open an account​ and deposit funds. The stock will be available on our platform on its debut trading day, so look out for updates closer to the time.

Can I get notified about Rivian’s IPO?

To receive notifications about Rivian’s upcoming IPO, enter your email address into the form on this page and we will email you before the stock is live on our platform. You can also enable desktop or mobile alerts after creating an account, so learn how to set-up trading alerts​.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

Trade on Rivian stock with us

Register for an account to get started. Once the shares are available on our platform, you will be able to spread bet or trade CFDs on Rivian's share price.