Rivian’s S-1 IPO documents reveal that its “cornerstone investors” had “indicated an interest” in buying up to $5 billion worth of the company’s stock at its IPO price.
Amazon was one of these parties, and the e-commerce giant appears to have completed the deal on Friday afternoon.
According to a recent Form 4, Amazon purchased roughly $200 million of Rivian shares at its IPO price of $78 per share. There were 2,564,102 shares purchased, which was just under the goal dollar amount of $200 million at the time of purchase.
At the company’s closing price of $129.95 per share this afternoon, Amazon now owns 158,363,834 shares of Rivian, valued at $20,579,380,228.3.
Because Amazon paid only $78 per share for its most recent tranche of Rivian shares, it has already realized a profit of more than $133 million.
After converting its numerous pre-IPO holdings and warrants to Class A shares in the firm now that it is publicly traded, Amazon’s newest purchase of Rivian stock at its IPO price works out to barely 1.6 percent of its entire investment in the company. Taking into account its past ownership, Amazon currently owns around 22% of Rivian.
Rivian’s first public offering (IPO) was a huge success, raising a considerable amount of money for the electric vehicle firm and rocketing its market cap into the stratosphere.
Rivian, for example, is valued at more than $127 billion at the end of the week’s trading cycle, according to Yahoo Finance.
Rivian is valued at about $10 billion for every manufactured unit, based on the fact that it only constructed 12 automobiles in the third quarter. This ratio will decline in the following quarters, but it highlights how Rivian’s value is based on future results rather than past performance.
Rivian Automotive Inc. has reached another milestone in its meteoric rise as new stock. It is now the leading U.S. corporation by market value without any revenue.
Rivian’s stock has risen 67 percent since its initial public offering on Wednesday, priced at $78. In terms of market value, it’s only about a quarter of a percent away from passing Volkswagen AG, one of the world’s top automakers. Meanwhile, Lucid’s stock has increased by 339 percent this year. In July, it became public after merging with a blank-check company.