Rivian Automotive closed its public offering of 86.25 million Class A shares. The shares were priced at $15.50 each. Underwriters fully exercised their option to purchase an additional 11.25 million shares. The transaction generated approximately $1.32 billion in net proceeds.
The company will use the capital for general corporate purposes and equity contributions for a U.S. Department of Energy financing agreement. This infusion strengthens Rivian's financial position as it scales manufacturing and operations.
The discounted offering price triggered a negative market reaction earlier this week. Rivian's stock price declined significantly as investors weighed the impact of shareholder dilution.