Key facts
- SpaceX's IPO price was $135, with shares opening at $150 and closing at $160.95.
- The company's market capitalization reached approximately $2.1 trillion on its debut.
- Elon Musk's net worth rose to $1.11 trillion, making him the world's first trillionaire.
- Uday Kotak questioned the valuation, calling it a 'mega bubble' test for capitalism.
SpaceX experienced a blockbuster stock market debut, instantly becoming one of the world's most valuable companies and propelling its founder, Elon Musk, to trillionaire status. The company's shares began trading at $150, an 11% premium to its IPO price of $135, and surged to close at $160.95, marking a nearly 19% gain on its first day. This performance lifted SpaceX's market capitalization to approximately $2.1 trillion, positioning it behind only Taiwan Semiconductor Manufacturing Co. (TSMC) among global listed firms.
Indian billionaire banker Uday Kotak reacted to the IPO by questioning the company's valuation, stating it defies traditional metrics and represents a significant bet on the future. He described the event as a 'true test for capitalism' and raised concerns about a potential 'mega bubble.' Despite his reservations, Kotak acknowledged the achievement of Musk and the United States for fostering such innovation.
The strong investor demand was evident, with over 500 million shares changing hands on debut. The momentum continued in extended trading, with shares rising further and adding approximately $80 billion to the company's market capitalization, pushing it to around $2.2 trillion. The debut also pushed Musk's net worth to an estimated $1.11 trillion, surpassing the combined wealth of several other billionaires.