Rivian’s IPO Delivers Underwriters $170 Million in Fees
Rivian’s IPO Delivers Underwriters $170 Million in Fees
(Bloomberg) -- Morgan Stanley and Goldman Sachs Group Inc. each got a payday of more than $43 million for taking electric vehicle maker Rivian Automotive Inc. public in the largest listing of the year.
JPMorgan Chase & Co., the third lead bank on the automaker’s initial public offering, collected more than $35.9 million in underwriting fees, according to a filing Friday. In all, those three, along with 19 banks with smaller roles, collected about $170 million from this week’s $12 billion IPO, which was also the largest on a U.S. exchange since 2014.
The addition of so-called greenshoe shares adds more than $25 million more in fees for the banks to divvy up, according to the filing with the U.S. Securities and Exchange Commission. That’s based on a commission of about $1.11 for each of the underwritten shares, which sold for $78 in the IPO.
The sale of the greenshoe, or overallotment, shares lifts the total raised in the IPO to $13.7 billion, according to data compiled by Bloomberg.
GM, Tesla
Rivian’s shares closed Friday at $129.95, up 67% from the IPO price. That gives it a market value of more than $113 billion, topping that of traditional automakers including Ford and General Motors Co.
Tesla Inc. still reigns as the largest EV maker, with a market value of more than $1 trillion.
Backed by Amazon.com Inc. and Ford Motor Co., Irvine, California-based Rivian began delivering its electric pickups in September and plans to begin rolling out sport utility vehicles and delivery vans by the end of the year.
Goldman Sachs and JPMorgan already ranked at the top of league tables this year for IPO underwriting fees, data compiled by Bloomberg shows. Goldman Sachs has collected $36 billion in fees with JPMorgan getting $33 billion. Morgan Stanley is fourth with $31 billion.
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