The company is offloading 75 million shares of common stock, with underwriters holding an option to purchase an additional 11.25 million shares over the next 30 days. This move comes on the heels of an 18% drop in the company's valuation during Tuesday's regular session, immediately following the initial announcement of the equity raise.
In section Market Quotes
Rivian Shares Slide Further Following $1.2 Billion Stock Offering
Investors pushed Rivian Automotive shares down another 4.4% to $15.76 in Wednesday premarket trading, extending a sharp sell-off that began Tuesday. The decline follows the electric vehicle maker's decision to price a $1.2 billion public offering at $15.50 per share, deepening concerns over the company's capital strategy.
Management intends to allocate the proceeds toward general corporate needs, specifically earmarking funds to satisfy equity requirements for a U.S. Department of Energy loan. These funds are designated for the construction of a manufacturing facility in Georgia. A syndicate of six firms, spearheaded by Goldman Sachs and Allen & Co., is managing the offering, which is slated to close on Thursday.
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