World’s biggest initial public offering in 2021

After initial public offering (IPO), Rivian shares closed at $100.73, marking a nearly 30% jump from its offering price. As a result, the company had a market valuation of more than 100bn USD. In addition, this was the biggest IPO in 2021. Even though the company just started its production and delivered few products, the market valued it very highly.

Of course, there is a huge surplus of money, so tons of investors try to find next good companies. What’s more, Tesla became trillion US dollar company and this amazing news also affects Rivian’s IPO. Even Tesla needed 11 years after its IPO to establish mass production to manufacture more than 1 million vehicles in a year. Therefore, we can safely say that Rivian’s share price includes this kind of experience and expectation.

In addition, we are living in climate crisis era. COP 26 was held from October to November in 2021 and it accelerated electrification in the automotive industry. Therefore, this trend also supports Rivian’s high share price. In fact, we need more zero emission cars and vans to reduce greenhouse gas emissions (GHGs).

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