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America’s second-biggest IPO still deserves a gold starINTL

America’s second-biggest IPO still deserves a gold star

Any doubts over the success of Rivian’s (RIVN) IPO have been put to rest. The electric pickup truck-maker debuted on the Nasdaq last Wednesday, raising nearly $12b and climbing 28%.

The shares were initially priced at $78 but opened the day at $106 and ended the day at around $100. Despite only having produced a few hundred of its R1T electric trucks, the IPO ended up being America’s biggest since Facebook (FB) went public in 2012.

The proceeds from the offering will be put towards the production of more R1T trucks as well as the eventual launch of the R1S electric SUV. Further down the pipeline, Rivian also hopes to eventually launch an electric commercial van.

why it matters

As of the end of last week, Rivian's market cap stood at more than $127b. By comparison, Ford's (F) market cap (and one of Rivian's private investors) stands at just under $78b. The valuation goes to show just how strong investor sentiment is towards EV makers at the moment, whether they're making money or not.