NORMAL, Ill. (WMBD) — Electric vehicle maker Rivian looking to soon trade on Wall Street.
The company that operates a manufacturing plant in Normal is looking to go public with its initial public offering as soon as next week.
Rivian’s initial public offering or IPO is estimated to be somewhere between $57 and 62 per share, but the public will have to wait for its chance to purchase stock in the e-v automaker.
More than 20 banks and security firms including Goldman Sachs, J.P. Morgan, and Morgan Stanley are taking the risk of investing in Rivian as it goes public; selling and offering its allocation of shares of Rivian’s IPO to its customers.
“Those are the folks that actually get the shares at the IPO price initially, then when you or I or the general public wants to buy those shares, it has to hit the secondary market,” said Cregg Miyat, a wealth advisor.
The secondary market is when sellers at banks and security firms decide to sell off their IPO shares. Miyat said it’s still too soon to tell what people will be paying to own part of the company.
“Once it starts trading, that’s when the price is going to take off because there’s a lot of interest in there and there’s more interest than there are shares and that’s going to force the price to go substantially higher,” Miyat said.
With the IPO, Rivian could gain $8 to $9 billion in capital.
“That is likely to fund some of their expansion plans in the coming few years,” said professor of finance, Abhishek Varma.
Varma a professor at ISU said Rivian’s going public is good news for the local economy as well.
“We basically have a company that will have a more solid balance sheet, they’ll have more cash. They’ll be able to deploy more capital,” Varma said.
Rivian will trade on the Nasdaq under the ticker symbol RIVN. The company is backed by amazon and ford with Amazon owning 20% of the company.