The Prof G Pod with Scott Galloway Office Hours: Rivian’s Colossal IPO, Fashion Industry Winners, and Pivoting Out of an Ad Agency
Nov 29, 2021
Discover the buzz around Rivian’s colossal IPO and what it means for the electric vehicle market. Dive into the shifting landscape of the fashion industry and the impact of changing consumer behaviors. Gain insights on retail success factors, emphasizing tech and affluent market targeting. Plus, valuable advice for ad agency professionals looking to pivot their careers, focusing on personal fulfillment and stability. Tune in for a mix of financial strategy and career guidance!
AI Snips
Chapters
Transcript
Episode notes
IPO Pricing Strategy
- Underwriters gauge institutional demand during a company's IPO roadshow to set the share price.
- They aim to price it slightly below market value, creating a modest "pop" on the first trading day.
Institutional Investor Advantage in IPOs
- While underwriters adjusting the IPO price isn't shady, the preferential access given to institutional investors is questionable.
- Retail investors often have to buy at inflated prices on the first trading day, missing out on the initial "pop."
EV Market Positioning
- Companies like Rivian, Lucid, and Tesla position themselves within the broader context of climate change, not just the automotive industry.
- This allows for inflated valuations, even surpassing established automakers despite limited production.