Key facts
- SpaceX will begin trading on the Nasdaq on Friday.
- Shares were priced at $135 each.
- The IPO is expected to raise $75 billion, potentially the largest in history.
- SpaceX's valuation is approaching $1.8 trillion.
- The offering is significantly oversubscribed, with a portion reserved for retail investors.
SpaceX is set to make its highly anticipated debut on the Nasdaq on Friday, with shares priced at $135 each. This pricing values the company at approximately $1.8 trillion and aims to raise a record $75 billion, potentially making it the largest public listing in Wall Street history. The offering has been heavily oversubscribed, with nearly four times the available shares being sought, and a significant portion is reserved for retail investors.
Market sentiment was lifted by U.S. President Donald Trump's comments suggesting a potential Middle East peace deal, which could reopen the Strait of Hormuz. This optimism contributed to expectations of a higher open for U.S. stock indexes. SpaceX is anticipated to start trading as the seventh largest U.S. publicly listed company.
However, some analysts express caution regarding SpaceX's fundamentals, noting over $4 billion in annual losses last year. The significant capital expected to flow into SpaceX's IPO has led some to believe it could impact other companies, potentially drawing capital away. This comes as U.S. equity funds experienced their first weekly outflow in three weeks, and the technology index recently confirmed a correction. Oil prices also slid following the peace deal remarks, and expectations for a Federal Reserve rate hike shifted to December.