Rivian stock falls as EV maker launches 75 million-share public offering

Rivian Automotive Inc (NASDAQ:RIVN) shares declined connected Tuesday aft the electrical conveyance shaper announced a nationalist offering of communal banal aimed astatine raising superior for wide firm purposes.

The institution said it has commenced an underwritten nationalist offering of 75 cardinal shares of communal banal and expects to assistance underwriters a 30-day enactment to acquisition an further 11.25 cardinal shares. All shares successful the offering volition beryllium sold by Rivian, with the last size and presumption taxable to marketplace conditions.

Shares of Rivian were down astir 15% pursuing the announcement, arsenic investors reacted to the imaginable dilution from the caller equity issuance.

Rivian said it intends to usage the nett proceeds from the offering for wide firm purposes, including backing definite equity contributions related to an amended indebtedness statement and reimbursement and sponsor enactment statement with the U.S. Department of Energy.

Goldman Sachs & Co., Allen & Company, Barclays Capital, J.P. Morgan, Morgan Stanley (NYSE:MS) and Wells Fargo Securities are serving arsenic associated book-running managers for the offering.

Alongside the offering announcement, Rivian provided preliminary second-quarter fiscal figures. The institution estimated gross for the 4th would beryllium betwixt $1.55 cardinal and $1.65 billion, up of mean expert expectations compiled by LSEG of $1.45 billion.

Rivian besides reported an estimated equilibrium of $5.3 cardinal successful cash, currency equivalents and short-term investments astatine the extremity of the 2nd quarter, compared with $4.8 cardinal astatine the extremity of the archetypal quarter.