Key facts
- SpaceX's IPO raised $75 billion at $135 per share, valuing the company at $1.75 trillion.
- Wall Street banks are expected to earn approximately $500 million in fees from the IPO.
- Goldman Sachs and Morgan Stanley are projected to receive $100 million each.
- Bank of America, Citigroup, and JP Morgan are each expected to earn $75 million.
- SpaceX stock saw a nearly 20% increase on its debut day.
SpaceX's initial public offering has generated significant financial returns for Wall Street banks, with an estimated $500 million in fees expected to be distributed among them. The company raised $75 billion by selling 555.6 million shares at $135 each, achieving a valuation of approximately $1.75 trillion. This marks the largest underwriting payday from an individual stock listing, surpassing the $300 million generated from Alibaba's 2014 IPO.
Goldman Sachs and Morgan Stanley, the lead underwriters, are each anticipated to receive around $100 million. Bank of America, Citigroup, and JP Morgan, which also participated in the offering, are expected to earn approximately $75 million apiece. The success of the IPO, with SpaceX stock rising nearly 20% on its first day of trading, is also likely to result in substantial "soft dollar" payments to lead underwriters from clients who benefited from immediate gains.
This lucrative event for investment banks is expected to contribute to strong earnings for major US financial institutions in the upcoming quarters, potentially outpacing consensus estimates. The successful pricing and post-IPO performance of SpaceX's stock position Goldman Sachs favorably for future investment banking deals.