![Rivian's shares surged 53% in IPO, valuation hits $100 billion Rivian's shares surged 53% in IPO, valuation hits $100 billion](https://varindia.com/storage/news/uploads/2018/02/618e3a6c423fe.jpg)
Shares of Rivian Automotive has increased as much as 53% in its Nasdaq debut, giving the Amazon-backed electric vehicle maker a market valuation of more than $100 billion after the world's biggest initial public offering this year. The shares closed at $100.73, marking a nearly 30% jump from its offering price.
Due to this Rivian the second most valuable US automaker after Tesla Inc., which is worth $1.06 trillion. Despite just having started selling vehicles and having little revenue to report, Rivian ranked ahead of General Motors Co. at $86.05 billion, Ford Motor Co. at $77.37 billion, and Lucid Group at $65.96 billion.
Rivian also has trouble ramping up production in Illinois as supply-chain constraints have hit automakers globally. Last July, the EV maker said Covid-19 and its impact on suppliers had delayed the launch of vehicles out of Illinois.
The IPO allowed Rivian to raise about $12 billion to fund growth, and that figure could rise to $13.7 billion if the full over-allotment of shares is exercised. This makes it the biggest US IPO since Alibaba Group Holding Ltd. went public in September 2014.
Rivian's IPO comes against the backdrop of the United Nations Climate Summit, where automakers, airlines and governments unveiled a raft of pledges to cut greenhouse gas emissions from global transport.
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