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How to buy Rivian Pre-IPO stocks.

royguti

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Hello guys,

I hope this question is not out of place here. I'm trying to find out how to buy Pre-IPO stock for Rivian, which market places have this ability.

Thank you in advance!
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Hello guys,

I hope this question is not out of place here. I'm trying to find out how to buy Pre-IPO stock for Rivian, which market places have this ability.

Thank you in advance!
"At our request, the underwriters have reserved up to % of the shares offered by us in this offering, for sale at the initial public offering price through a directed share program to eligible customers who have standing preorders as of September 30, 2021 and to persons who are directors, officers or employees, or who are otherwise associated with us and identified by our directors and officers. See “Underwriting—Directed Share Program.”
 
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"At our request, the underwriters have reserved up to % of the shares offered by us in this offering, for sale at the initial public offering price through a directed share program to eligible customers who have standing preorders as of September 30, 2021 and to persons who are directors, officers or employees, or who are otherwise associated with us and identified by our directors and officers. See “Underwriting—Directed Share Program.”


I wonder what “eligible customer” is defined as? Like is there more to it than just having a standing preorder prior to sept 30
 

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Your broker has to be partnered with one of these firms to be able to buy shares for IPO.

Rivian R1T R1S How to buy Rivian Pre-IPO stocks. 1633437940416
 

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Dark-Fx

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Autolycus

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I wonder what “eligible customer” is defined as? Like is there more to it than just having a standing preorder prior to sept 30
Yes, at a minimum you have to be eligible to purchase the stock under US securities law.
 
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I wonder what “eligible customer” is defined as? Like is there more to it than just having a standing preorder prior to sept 30
A pre-IPO investment would be considered a private offering.
"In Rule 506(b) of Regulation D, for example, private offerings are restricted to an unlimited number accredited investors and a limited number of non-accredited sophisticated investors, defined as those investors with sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment."

At least helps a little to protect from the lawsuits that can entail if a stock drops (even those publicly traded) and investors lose money. Recent relevant examples are CCIV/LCID and QS.
 

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royguti

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"At our request, the underwriters have reserved up to % of the shares offered by us in this offering, for sale at the initial public offering price through a directed share program to eligible customers who have standing preorders as of September 30, 2021 and to persons who are directors, officers or employees, or who are otherwise associated with us and identified by our directors and officers. See “Underwriting—Directed Share Program.”

Yes, I was reading this so in theory, any investor that just got interested in buying pre-ipo now won't be able to? I just became an accredited investor so I know that was one of the requirements.
 

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Yes, I was reading this so in theory, any investor that just got interested in buying pre-ipo now won't be able to? I just became an accredited investor so I know that was one of the requirements.
My interpretation: The first gate is whether you had a pre-order in before 30 Sept. If you did you will be able to buy shares if you are eligible to buy such shares (accredited or sophisticated). I don't think it matters whether you were eligible when you placed the pre-order. At the same time someone who has just become interested in buying the shares will not be able to unless he had a pre-order in place prior to 30 Sept.
 
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royguti

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My interpretation: The first gate is whether you had a pre-order in before 30 Sept. If you did you will be able to buy shares if you are eligible to buy such shares (accredited or sophisticated). I don't think it matters whether you were eligible when you placed the pre-order. At the same time someone who has just become interested in buying the shares will not be able to unless he had a pre-order in place prior to 30 Sept.
Yes that's the way I interpret it, I'm just getting into stocks so not sure if they can have another round of pre-ipo or not, if not it seems I'm out of luck
 

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A percentage of shares of the offering refers to the Initial Public Offering. These will not be "pre-IPO" shares, so they will not be subject to the accredited investor rules. The way IPOs work is the first ever investments from the general public close as a round of funding the night before the stock getting listed on the exchange the following morning. This is the first time people who aren't accredited investors (or those with certain other exceptions like employees) can invest.

Brokers often get an allotment of shares of the IPO for their retail customers (and they usually reserve them for clients with certain asset or trade volume levels, but notably they do not require you to be an accredited investor). These allotments are usually small (retail customers aren't nearly as important as the institutional arms), and popular IPOs tend to be overbid to the point that you'll have trouble getting in at the closing price.

The bankers do their darnedest to make sure the stock has a strong opening day. That means the IPO round gets priced low relative to what they believe demand will be on the exchange the following day. This creates tension because the company is selling new shares -- and the higher price they sell them for, the more cash they put in their coffers. But you don't want to sell them so high that the stock trades down the next day.

The allotment Rivian is setting aside will ensure that, if you want them, you can buy some shares at the IPO price, not subject to the market conditions on the following day when the stock is newly listed. The exact mechanics are uncertain right now, but will probably require you to set up an account with either a designated broker or their transfer agent.
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