Rivian Automotive Inc. (NASDAQ:RIVN) stock is trading lower on Monday. The decline follows a structural shift in the electric vehicle manufacturer’s equity valuation, driven by a massive capital raise and broader macroeconomic headwinds impacting the market.
Details of the Capital Raise
The downward pressure on the stock stems from a newly announced underwritten public offering of up to 75 million shares. On Friday the company granted underwriters a 30-day option to purchase up to an additional 11.25 million shares. The initial 75-million-share offering, priced at a steep discount, implies gross proceeds of approximately $1.74 billion when measured against the prior closing price of $20.14.
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