Rivian Is Raising Around $1.5 Billion By Offering 75 Million Shares. Here’s Why the Stock Is Tanking.
Common stock raises are often highly dilutive to existing shareholders.
Overview
Shares of the premium electric vehicle company Rivian (NASDAQ:RIVN) crashed 18% on July 7, after the company announced a common stock offering.
Rivian has launched an offering of 75 million common shares. Underwriters will have the option to purchase an additional 11.25 million shares of Rivian’s common stock over the next 30 days.
Details
Based on Rivian’s closing price of $20.14 per share on July 6, the offering would raise slightly over $1.5 billion. Here’s why the stock is tanking.
Source
Originally published at www.fool.com.
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