I’d like to buy some of the IPO Rivian shares. How does one go about doing this?

LOL. It is called being a preferred customer at your brokerage. You will be able to buy later. I would wait because IPOs always have a big bounce at the outset.

Work there, know someone who works there, have a ton of money with a broker who can get you shares at the opening/pre opening price. Realistically Put your good till canceled order in with your regular broker at the most your willing to pay and hope it gets filled at a decent price.

I bought Facebook the day it went public I just put an order in with my online schwab account. Sold a few months later like an idiot for a little profit. Oops.

So you are saying that I don’t. Got it.
Ohh well.

quote:

Originally posted by Black92LX:
I’d like to buy some of the IPO Rivian shares. How does one go about doing this?

IPO, as I'm sure you know, stands for Initial Public Offering. You can get in on the IPO by finding out when shares will be on the stock market as part of the Initial Public Offering. That's when the company will sell the bulk of the shares. I think a good portion of those shares are spoken for already.

The mechanics is you would place an order for the ticker symbol but with one condition, it has to be a price limit order as opposed to a market order. They do not allow market price orders as the price can wildly fluctuate. Just look at the last price paid and set your limit order to be a couple of cents more so that you're near the queue.

The back story of being a preferred customer is that big money customers get their orders locked in at the IPO price before the IPO begins and their orders execute the micro second the IPO starts.

Even before that, the venture capitalists who have funded the company all along already have their shares and they can choose to sell those shares as soon as the IPO starts. I think some of the "preferred customers" who got their stocks at the instant the IPO starts turns around and sell their shares for an easy pick up of money amid the hopefully feeding frenzy. The only ones not allowed to sell their stock for a time period are company employees that are lower than senior management as that will lower the price for the big people.

As with any stock, you make a call whether it'll be good or not. My wife has gotten in on the day of the IPO on some stock. Most notably, Visa and Mastercard that have proved winners over the long run. We bought HONEST recently and that turned out to be a dud. I bought Palantir and I sold it recently because while I did make some money, it was just going sideways and I needed the money for some other stocks.

I see that Rivian is an electric vehicle company.

Another alternative if you believe in electric vehicles and self-driving vehicles is to invest in an ETF that focuses on the industry. That is one way to avoid the risks of picking a dud of a company while still betting on the industry as a whole.

IDRV is one such ETF; I'm sure there are others. This was just the first one that came up on google.

Have they solved the science barring the EVs from getting a “fill up” on the highway?

IPO is slated for tomorrow. Just wanted to grab a few shares not as an investment purpose but just to say that I had some.
I think they have a really great product on paper and thought though not sure how well it will go overall because EVs still very much are a novelty for most currently.

quote:

Originally posted by Veeper:
Have they solved the science barring the EVs from getting a “fill up” on the highway?

I am not really sure what that even means and how it pertains to being part of the IPO.

quote:

Originally posted by Rey HRH:



Even before that, the venture capitalists who have funded the company all along already have their shares and they can choose to sell those shares as soon as the IPO starts. I think some of the "preferred customers" who got their stocks at the instant the IPO starts turns around and sell their shares for an easy pick up of money amid the hopefully feeding frenzy. The only ones not allowed to sell their stock for a time period are company employees that are lower than senior management as that will lower the price for the big people.

This is partially correct. "Preferred or High Dollar Clients" do get the invitation to join the IPO allotment. The Institutions are given a # of shares to sell at IPO and thus individual clients are given the opportunity to buy what they want or what they can get.

Generally, there is a "no sale for 1 year" clause on the opportunity. Doesn't mean you can't sell - just means that if you do sell, you won't be offered the opportunity to buy IPOs thru that institution again. Evidently, they pay a "penalty" for premature selling. This controls the "pump and dump" mentality of the IPO.

Most IPOs are largely scooped up by large firms/funds. The individual investor can only get in on the IPO thru these large firms. And if it is a high demand IPO, individuals are likely to never see the IPO. Even if invited by their investment firm, they are likely to get a small percentage of what they wanted, ie they want 1000 share and get 100 shares.

Also, staying on the "list" of who gets the IPO seems to be largely dependent on participating when you are offered the opportunity. Thus you can't just cherry pick the great IPOs. If the institution is participating in the IPO then they "expect" the clients who usually get offered to jump in as well. Not all institutions are offered the IPO. So even if you want the IPO, you are likely to not get in on it.

I'm still getting IPO offers thru my Broker and truthfully they've all come out winners to various degrees. Visa, Alibaba, Palantir..... just some recent examples.

Andrew

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He is right. You can buy shares of the company after the IPO. I would wait a few months. BTW Ford owns five percent of the company.

There are now websites that offer pre-ipo shares.

Just google buying pre-ipo shares.

I have not done it but know people have.

Most of the sites require you to be pre-qualified investor and have a min. net worth.

Here is one site there are many more.

https://www.preipomarketplace.com/

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Seems sketchy to me. Let us know how it works out.

Check here: https://www.finra.org/investor...are-not-your-friends

quote:

Originally posted by El Cid 92:

Generally, there is a "no sale for 1 year" clause on the opportunity. Doesn't mean you can't sell - just means that if you do sell, you won't be offered the opportunity to buy IPOs thru that institution again. Evidently, they pay a "penalty" for premature selling. This controls the "pump and dump" mentality of the IPO.


Andrew

One year commitment doesn't sound like it's an easy money pick up. I just naturally go into "gaming mode" when faced with such scenarios. I supposed if one wants to remain on the invite list but thinks the current IPO offering is shaky, one can short sell the stock at another brokerage firm or other strategies involving options.

Read the other week 95-98% of available stock is already spoken for by institutional buyers

I don't want to jinx anything for anyone but looking into Rivian reminded me of Lordstown Motors (RIDE) IPO sometime in October (I think). The high was $30 and now it's 5.89.

Another way to play the electric vehicle industry is just like betting on Cisco and such during the dot com boom which was based on betting on the companies that sold shovels during the gold rush instead of betting on the gold miners.

Global X Lithium & Battery Tech Fund (LIT) holds a basket of companies involved in lithium ining and refining, as well as lithium-batter production. It's a way to bet on electric vehicles.

I bought some in Oct 2020 at $42 and it's now $96.

I’ve had a Rivian on order for 2 years. I got an invite with no guarantee I’ll get any allotment but Morgan Stanley is handling the ipo shares if you have an account with them, call your broker.

They are located in the town I live in.

quote:

Originally posted by pbramlett:
I’ve had a Rivian on order for 2 years. I got an invite with no guarantee I’ll get any allotment but Morgan Stanley is handling the ipo shares if you have an account with them, call your broker.

Father In Law has had one on order for awhile now. Guess I’ll check and see if he got contacted about it.

Late to this party. But, if you had a trading account with SoFi, you could have indicated interest to purchase shares pre-IPO.

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OK why that particular company?