Key facts
- SpaceX shares closed up 19% on their Nasdaq debut.
- The company's valuation surpassed $2 trillion following its IPO.
- SpaceX's IPO raised $75 billion, making it the largest in history.
- The IPO was priced at $135 per share.
- Elon Musk became the world's first trillionaire due to the IPO.
- Over 4,400 SpaceX employees became millionaires as a result of the IPO.
- Options trading for SpaceX shares is expected to begin Tuesday.
- A greenshoe option allows for the sale of an additional 15% of shares, potentially raising $11.2 billion.
- Uday Kotak questioned SpaceX's valuation, calling it a potential 'mega bubble'.
- Protesters demonstrated against the SpaceX IPO and Elon Musk's wealth.
- Leveraged ETFs tied to SpaceX's IPO have been delayed due to SEC concerns.
- The UK retail offering for SpaceX was oversubscribed.
SpaceX has achieved a historic debut on the Nasdaq, with its shares closing up 19% on the first trading day and propelling its valuation beyond $2 trillion. The company's initial public offering (IPO) was priced at $135 per share, successfully raising $75 billion and establishing it as the largest IPO in history. This landmark event has also made Elon Musk the world's first trillionaire and has generated substantial wealth for over 4,400 SpaceX employees, transforming career risks into significant financial windfalls.
The IPO saw robust investor demand, with a notable allocation of shares directed towards retail investors, who reportedly doubled the available shares in some offerings. The company's crypto perpetuals are trading at a premium, indicating a market capitalization exceeding $2.2 trillion. A greenshoe option is included in the IPO, allowing for the sale of an additional 15% of shares, potentially raising an extra $11.2 billion if demand persists and helping to stabilize trading. Options trading for SpaceX shares is scheduled to commence on Tuesday.
However, the company's high valuation and a relatively small free float have led analysts to predict potential volatility. Limited access for Asian investors and SpaceX's nascent presence in the region have also raised questions about its future growth trajectory. Indian billionaire Uday Kotak has voiced skepticism regarding SpaceX's valuation, describing it as a potential 'mega bubble' that defies traditional metrics, while still acknowledging the innovation enabled by Elon Musk and the U.S. system. Protesters gathered outside JPMorgan's headquarters to demonstrate against the IPO and Musk's trillionaire status, aiming to dissuade institutional investors from allocating workers' retirement funds to such companies.
Further developments include delays in the launch of leveraged ETFs tied to SpaceX's IPO, as the SEC has raised concerns, denying traders immediate leveraged exposure. The potential IPOs of OpenAI and Anthropic are also anticipated to create new billionaires, with SpaceX's listing expected to be the largest. Companies like SpaceX, OpenAI, and Anthropic may face a lengthy wait for inclusion in the S&P 500 due to ongoing profitability requirements from S&P Dow Jones Indices. The UK retail offering for SpaceX was oversubscribed, with a significant portion of applicants receiving fewer shares than requested.