Rivian IPO Prospect Opens Opportunities for ETFs

Rivian IPO Prospect Opens Opportunities for ETFs

Amazon-backed electric vehicle startup, Rivian Automotive Inc. is set to go public later in 2021 at a valuation of about $50 billion, according to an article published by Bloomberg. The $50-billion valuation will likely make the IPO one of the biggest of 2021 and one of the most successful listings in the EV market since Tesla’s 2010 offering.

The increasing popularity of public listing with EV manufacturers has not only benefitted companies in the industry but has also rubbed off the financial sector. With the rapid emergence of automation and technological breakthrough, ETFs have also been predicted to be one of the major gainers of the frenzy.

Rivian was valued at $27.6 billion in a funding round in January, raising $2.65 billion in the round, with T. Rowe Price Group Inc. (TROW) leading the group of investors. The startup has raised over $8 billion since the start of 2019, as investors expect its battery-electric pickup and SUV to gain market share in the US.

Rivian is also looking to challenge the status quo by putting its foot on the field that even Tesla is yet to feel as the company will be delivering new electric delivery vans to Amazon, with the goal of having 10,000 vehicles on the road by 2022. The production of the vehicles will commence in late 2021 at Rivian’s factory in Illinois, with the delivery to be completed by 2024. Rivian has also announced plans to replicate the feat with smaller models in China and Europe.

As regards ETFs leveraging the influx of EV companies into the capital market, Renaissance IPO ETF IPO is likely to add Rivian once it goes public. Initial Public Offering (IPO) is a portfolio of newly U.S.-listed initial public offerings of companies whose unseasoned equities are not well-represented by the core U.S. equity indices. Offerings that meet the liquidity and operational requirements are included in the index at the end of the fifth day of trading, or upon quarterly reviews, weighted by tradable float, capped at 10%, and removed after two years.

There are also speculations that some electric-vehicle ETFs like Global X Autonomous & Electric Vehicles ETF DRIV, SPDR S&P Kensho Smart Mobility ETF HAIL, iShares Self-Driving EV and Tech ETF IDRV and Simplify Volt RoboCar Disruption and Tech ETF VCAR may add Rivian after the company goes public.

Interested investors can closely monitor the event on Yutaka Investments and place their stake on the EV ETFs beforehand.

For more information about the Rivian IPO and other EV market-related news, please visit – www.yutakainvestments.com.

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