Rivian Automotive Inc (NASDAQ:RIVN) shares are tumbling in extended trading Monday after the company announced a public offering.
- Rivian Automotive stock is among the weakest performers. What’s behind RIVN decline?
Rivian Commences Offering Of Common Stock
Rivian announced an underwritten public offering of up to 75 million shares of common stock. The company also plans to grant the underwriters a 30-day window to buy up to an additional 11.25 million shares at the public offering price, which has not been disclosed.
All of the shares in the offering are being sold by Rivian. The company expects to use the net proceeds from the offering for general corporate purposes, including funding of certain equity contributions pursuant to an Amended and Restated Loan Arrangement and Reimbursement and Sponsor Support Agreement with the U.S. Department of Energy.
Rivian ended the first quarter with approximately $4.83 billion in cash, cash equivalents and short-term investments.
RIVN Shares Slip After The Bell
RIVN Price Action: Rivian shares were down 7.89% in after-hours Monday, trading at $18.55 at the time of publication, according to Benzinga Pro.
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