Rivian Shares Plunge Further as $1.2 Billion Offering Prices at $15.50
RIVN sits 36% above its 52-week low of $11.57 on elevated volume (2.9× avg).
Summary
Rivian priced its $1.2 billion public offering of 75 million shares at $15.50 per share, with underwriters having an option for an additional 11.25 million shares. The stock continued its decline, falling 4.4% in premarket trading after an 18% drop the previous day. This significant capital raise follows the 424B5 filing on July 6th announcing the offering and a Reuters report on July 8th confirming the pricing. The company intends to use the proceeds for general corporate purposes, including equity requirements for a Department of Energy loan to support its Georgia manufacturing facility. The offering is expected to close on Thursday.
At the time of this announcement, RIVN was trading at $15.74 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $20.8B. The 52-week trading range was $11.57 to $22.69. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.