Key facts
- Kingdom Holding Co.'s stake in SpaceX is now valued at $6.83 billion after its IPO.
- The stake's value increased by approximately $2.36 billion following SpaceX's Nasdaq debut.
- Kingdom Holding owns 42.4 million shares of SpaceX Class A common stock.
- SpaceX's IPO on June 12 was the largest in Wall Street history, raising $75 billion.
- The SpaceX shares are subject to a 180-day lock-up period with early-release provisions.
- Investor Kevin O'Leary defended SpaceX's high valuation, attributing it to future growth prospects.
Saudi Arabia's Kingdom Holding Co. announced that the value of its stake in SpaceX has surged to approximately $6.83 billion following the aerospace company's initial public offering on Nasdaq. This marks an unrealized gain of about $2.36 billion for the Riyadh-headquartered investment firm, which is controlled by Prince Alwaleed bin Talal.
SpaceX's IPO on June 12 saw its shares debut at $135 and close the first trading day at $160.95. Kingdom Holding disclosed in a filing to the Saudi Exchange that it owns 42.4 million shares of SpaceX Class A common stock, representing a 0.34 percent stake. The holding was previously carried at $4.47 billion in the firm's financial statements as of March 31.
The investment firm's exposure to SpaceX originated from a stake in Twitter in 2011 and evolved through transactions involving X and xAI. However, Kingdom Holding's SpaceX shares are not immediately tradable and are subject to a lock-up period of up to 180 days from the listing date, with provisions for early release tied to specific conditions such as SpaceX's earnings reports and share price milestones.
The IPO itself was a record-breaking event, with SpaceX raising $75 billion and achieving a market capitalization near $2.1 trillion at its first-day close. Proceeds from the offering are earmarked for growth initiatives, including investments in artificial intelligence computing capacity, launch infrastructure, and satellite constellation expansion.
Billionaire investor Kevin O'Leary has publicly supported SpaceX's valuation, suggesting that the premium reflects the company's future trajectory and Elon Musk's track record in building new industries, rather than its current earnings. This perspective contrasts with criticism from Senator Bernie Sanders, who linked Musk's wealth accumulation to wealth inequality.