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Automobile Company Rivian Hits $100 Billion Valuation on IPO Debut

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Rivian

Rivian Automotive Inc had its stock soaring as high as 53 percent on its Nasdaq debut on Wednesday, giving the Amazon-supported Electric Vehicle maker a market value of over $100 billion. Rivian is now the world’s largest IPO (Initial Public Offering) this year.

At its opening, the Rivian stock closed at $100.73, having an increase of over 30 percent from its initial public offering price. Following this, Rivian is now the second most valuable automobile company in the United States.

It follows Tesla Inc, which is valued at $1.06 trillion and comes ahead of automobile giants General Motors and Ford, which are valued at $86.05 billion and $77.37 billion. This is despite the company having only recently started selling vehicles and having little income to declare.

However, Rivian is having problems maintaining manufacturing in Illinois due to global supply-chain delays. The company stated that COVID-19 and the influence of the pandemic on suppliers delayed the launch of vehicles out of the state in July.

Electric Vehicle (EV) companies have become some of the most promising investments in the past year. At Rivian’s full valuation at its first IPO went over $106 billion, including assets like options and restricted stock units. From the IPO, Rivian was able to raise about $12 billion with the total amount rising up to $13.7 billion, if the full overallotment of shares is exercised.

Overallotment of shares is an option that allows the sale of additional shares which a company plans to issue in an IPO.

This is the largest IPO in the United States since Alibaba Group Holding Ltd went public in 2014.

Rivian founder R.J. Scaringe said in an interview that the company’s transition to public status and growth in the capital gives the company room to generate promising products and growth in terms of the segments and new vehicles that the company will be making.

Two of Wall Street’s largest investors, T. Rowe Price and BlackRock are touting Rivian to be the next big player in a field that is dominated by Elon Musk’s Tesla Inc, despite increasing pressure on automobile companies in China and Europe to reduce their emissions.

The IPO coincides with the United Nations Climate Summit which saw numerous automobile and airline companies, as well as governments, commit to reduce greenhouse gas emissions from global transportation.

Rivian’s largest stakeholder, Amazon.com Inc owns up to 20% of the company.

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Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

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Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

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Apple’s Market Value Plummets Amid Regulatory Scrutiny on Both Sides of Atlantic

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Apple Inc. finds itself at the center of regulatory storms on both sides of the Atlantic, leading to a significant dip in its market value.

The tech giant is facing intense scrutiny from regulators with allegations of antitrust violations looming large.

In the United States, the Department of Justice, along with 16 state attorneys general, has filed a lawsuit against Apple, accusing the company of breaching antitrust laws.

This legal action has sent shockwaves through the investment community, resulting in a 4.1% drop in Apple’s shares on Thursday alone.

This decline wiped out approximately $113 billion in market value, increasing its year-to-date losses to 11%.

Once hailed as the world’s most valuable firm, Apple’s shares have underperformed major indices like the Nasdaq 100 and the S&P 500 in 2024.

Across the pond, European regulators are also eyeing Apple’s practices closely. The company faces potential probes into its compliance with the region’s Digital Markets Act.

This legislation empowers authorities to levy hefty fines, up to 10% of a company’s total annual worldwide revenue, for violations.

With investigations looming, Apple’s future in the European market appears uncertain.

Despite Apple’s staunch defense against the allegations, investors remain jittery about the implications of regulatory actions.

The company’s legal battles have underscored broader concerns about its dominance in the digital marketplace and the impact on competition.

As the regulatory saga unfolds, Apple must navigate turbulent waters, balancing legal challenges with its commitment to innovation and market leadership.

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NNPC Gears Up for Public Listing, Embraces Full Commercialization

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The Nigerian National Petroleum Company Limited (NNPC) is poised for a transformation as it sets its sights on a public listing.

The announcement came from Mele Kyari, the Group Chief Executive Officer of NNPC, during his address at the ongoing 2024 CERAWEEK in Houston, United States.

Kyari affirmed NNPC’s commitment to aligning with the provisions of the Petroleum Industry Act (PIA), which mandates the company to become a quoted entity.

This move, he emphasized, is a pivotal step towards realizing the objectives outlined in the PIA, ensuring transparency, efficiency, and profitability in the Nigerian oil and gas sector.

In his remarks, Kyari highlighted the transformative journey NNPC has undergone, transitioning from a government-owned corporation to a commercially-oriented and profit-driven entity.

He emphasized that the company has evolved into a full limited liability company, capable of generating dividends for its shareholders while adhering to tax and royalty obligations.

Furthermore, Kyari underscored the strategic importance of NNPC to Nigeria’s resource management and economic development, emphasizing its pivotal role in the country’s energy sector.

The planned public listing of NNPC shares is anticipated to democratize ownership and enhance transparency within the company’s operations.

Kyari noted that the process is in line with the legal framework established by the PIA and is expected to commence within the stipulated timeline.

NNPC’s bold move towards commercialization signifies a paradigm shift in Nigeria’s oil and gas industry, promising increased accountability, efficiency, and value creation for stakeholders.

As the company embraces this new era, it aims to consolidate its position as a key player in the global energy landscape while driving sustainable growth and development domestically.

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