SpaceX prices shares at $135 in $75bn historic IPO

Space Exploration Technologies Corp has officially priced its initial public offering at $135 per share, raising $75 billion from underwriters. The transaction involves the sale of 555.6 million shares and marks the largest initial public offering in financial history, significantly eclipsing the $24.9 billion raised by Saudi Aramco during its 2019 market debut.

The company confirmed the pricing ahead of schedule via an update on its website. Trading is scheduled to commence on the Nasdaq stock exchange under the ticker symbol SPCX, with underwriters set to begin marketing the shares to the public on Friday.

At the $135 price point, the valuation positions founder Elon Musk to potentially become the world’s first trillionaire. However, this outcome remains contingent on share price performance and valuation metrics once active trading begins. Market participants should note that the actual opening price may rise or fall despite the initial pricing structure.

Anecdotal reports indicate significant interest from both institutional investors and individual buyers. If demand remains strong, the company retains an option to issue an additional 83.3 million shares, which could raise a further $11 billion. It remains unclear whether this option will be exercised, as it depends on sustained market appetite.

Synthetic markets offer early indicators of investor sentiment. Hyperliquid, a crypto betting market providing synthetic exposure to SpaceX stock, currently prices the shares at $167. This implies an expected 20% increase on the first day of trading, though such predictions are not guaranteed market values.

SpaceX is a 24-year-old technology firm known for its engineering portfolio, which includes the world’s largest reusable rocket and a new American chip fabrication plant. The long-term justification for the company’s high valuation remains an open question, given the extensive engineering commitments and projects ahead.