SpaceX Raises $75 Billion in IPO

SpaceX raised a total of $75 billion in an IPO, pricing 555.6 million shares at $135 each. The stock ended the day at $161, jumping 19%, valuing the company at $2.1 trillion.

The listing is the biggest of all time, more than doubling the value of Saudi company Aramco’s stock market debut in 2019, which raised around $29 billion. In a filing, SpaceX stated it has granted underwriters a 30-day option to purchase an additional 83 million shares, which could increase the total fundraising to $86 billion at a $1.78 trillion valuation.

Elon Musk’s rocket, satellite, and AI company drew orders more than three times the amount on offer, with demand coming from huge asset managers, Gulf sovereign wealth funds, hedge funds, and retail investors. Individual investors placed orders for more than $100 billion and will be allocated around 20% to 25% of the total shares sold. Musk is apparently keen to place smaller shareholders at the centre of SpaceX’s ownership, leaving fewer shares available for big companies and accounts that tend to be prioritised in IPOs.

Through the funds raised, SpaceX is to pump cash into a plan to establish AI data centers in space, a Musk vision that centers on overcoming energy limitations on Earth. The company is also plotting new satellite constellations to fuel Starlink, while it will also pay down debt after taking a $20 billion bridging loan in March. Following SpaceX’s market debut, OpenAI and Anthropic have also announced intentions to hold a listing.