SpaceX has officially priced its initial public offering at $135 per share, raising $75 billion and setting a new record for the largest IPO in history.
The company said it sold 555.6 million shares to underwriters, who are set to begin marketing the stock on the Nasdaq on Friday. SpaceX will trade under the ticker symbol SPCX.
The amount raised exceeds the $24.9 billion secured by Saudi Aramco during its 2019 stock market debut.
Pricing set ahead of trading
SpaceX took an unusual approach by fixing the IPO price before the official roadshow began.
According to the report:
- The company tested the $135-per-share price with investors in advance.
- Demand for the offering was four times the number of shares available.
- Traditional IPO pricing methods were largely bypassed.
The Financial Times reported that SpaceX had been gauging investor appetite before launching its roadshow, while Bloomberg said the offering was heavily oversubscribed.
Underwriters have the option to bring an extra 83.3 million shares to market.
At the IPO price, that would generate approximately $11 billion in additional proceeds.
Trading activity after the debut could push the stock either higher or lower.
According to the report, Hyperliquid, a crypto-based prediction market offering synthetic exposure to SpaceX shares, values the stock at $167, implying expectations of a roughly 20% first-day gain.
Long-term valuation questions remain
The report noted that investors will be watching whether SpaceX can justify its valuation over time.
Among the company’s ongoing projects are:
- Development of the world’s largest reusable rocket.
- Construction of a new U.S. chip fabrication facility.
Musk remains the biggest beneficiary
Elon Musk owns:
- Nearly 850 million Class A shares, carrying one vote each.
- About 5.6 billion Class B shares, which carry 10 votes per share.
The Class B holdings include one billion shares linked to a long-term target involving a future SpaceX colony on Mars.
The IPO valuation could make Musk the world’s first trillionaire, according to the report.
Several existing investors are expected to see substantial gains.
Antonio Gracias, founder and chief executive of Valor Management, will hold 503.4 million shares, giving his stake a value of nearly $68 billion at the IPO price.
Other major shareholders include:
- Luke Nosek, a SpaceX board member, with 33 million shares.
- Chief Operating Officer Gwynne Shotwell, who owns nearly 12.6 million shares.
Venture investors also stand to benefit
SpaceX spent two decades as a privately held company and raised around $40 billion in private funding during that period.
The public listing is expected to generate significant returns for:
- Roughly 400 venture capital investors.
- Smaller investors who gained exposure through special purpose vehicles (SPVs).
Some SPV investors may not know the full value of their gains until months after the company’s market debut because of the structure of those vehicles.
TL;DR
SpaceX has priced its IPO at $135 a share, raising $75 billion in what the company said is the largest stock market debut on record. The stock will trade under the SPCX ticker, with Elon Musk and early investors set to benefit from the offering.
AI summary
- SpaceX priced its shares at $135 each.
- The IPO raised $75 billion, surpassing Saudi Aramco’s debut.
- The stock will trade under the SPCX symbol.
- Underwriters may sell another 83.3 million shares.
- Elon Musk and early investors are poised for large gains.
