Electric truck company Rivian rolls out $11.9 billion IPO.

Rivian today showed that people “will come” even before you build it. Today, the electric truck manufacturer raised a massive $11.9 billion in its initial public offering (IPO). This is the biggest so far this year and the sixth-largest ever on a US exchange. It trumps Uber which raised $8.1 billion in 2019.

The company, founded in 2009, is now valued at more than $77 billion — nearly as much as traditional companies Ford and General Motors.

Shares were offered at $78 each — above the previously estimated price between $57 and $62, showing there’s a keen commitment to buy. Pretty good for a company with almost no revenue from actual vehicle sales. 

I spoke to Maxim Manturov, Head of Investment Research at Freedom Finance Europe, just before the IPO, who explained:

Rivian’s two consumer products, the Rivian R1T and Rivian R1S received over 48,390 pre-orders as of the end of September, while its commercial vehicle, Rivian EDV, received substantial orders and investments from Amazon. 

By 2025, Amazon will own 100,000 EDV’s, with 10,000 to be purchased by the end of 2022.

Entering a dominant market: How does Rivian stack up against its two main rivals?