SpaceX (NASDAQ:SPCX) confirmed on Thursday that it had priced its landmark initial public offering at $135 per share, raising $75 billion in what has become the largest IPO ever completed in the United States.
The Elon Musk-led company sold 555.56 million shares, giving the rocket, satellite and spacecraft group an implied valuation of approximately $1.77 trillion based on 13.08 billion shares outstanding.
Historic Valuation Places SpaceX Among Market Giants
The valuation establishes a new record for an initial public offering and immediately places SpaceX among the largest publicly traded companies in America.
When trading begins on Nasdaq on Friday, the company is expected to rank as the seventh-largest listed business in the United States by market capitalisation.
The valuation could increase further if underwriters choose to exercise their option to sell additional shares, a decision that is typically made within 30 days of an IPO.
At its debut valuation, SpaceX is worth more than several established corporate heavyweights, including JPMorgan Chase, Berkshire Hathaway, Eli Lilly, Meta Platforms and Musk’s electric vehicle manufacturer Tesla.
The lofty valuation comes despite SpaceX reporting a loss last year and generating revenues that remain significantly below those of many other mega-cap companies.
Sector Peers Gain Ahead of Market Debut
Investor excitement surrounding the upcoming flotation lifted shares across the space and satellite sector in premarket trading.
Satellite communications provider EchoStar (NASDAQ:SATS) rose more than 4%, while Viasat (NASDAQ:VSAT) gained 2.3%.
AST SpaceMobile (NASDAQ:ASTS) advanced 5.8%, and Rocket Lab (NASDAQ:RKLB) climbed as much as 8% before the opening bell as traders positioned themselves ahead of SpaceX’s debut.
The strong performance reflected broader optimism about the space industry and expectations that SpaceX’s market entrance could attract increased investor attention to the sector.
IPO Smashes Previous Records
The previous record for the largest IPO belonged to Saudi Aramco, which raised $25.6 billion during its 2019 market debut at a valuation of $1.71 trillion.
Adjusted for inflation, Aramco’s offering generated approximately $33.2 billion and valued the company at around $2.21 trillion.
Even so, SpaceX’s $75 billion fundraising effort comfortably surpasses all previous IPOs in terms of capital raised, establishing a new benchmark for public offerings.
Starlink and Space Operations Drive Growth Story
Founded in 2002, SpaceX says its mission is “to build the systems and technologies necessary to make life multiplanetary, to understand the true nature of the universe, and to extend the light of consciousness to the stars.”
The company stated that its launch operations have been responsible for more than four-fifths of all mass sent into orbit over the past three years, highlighting its dominant position within the commercial space industry.
In addition to its launch business, SpaceX operates the Starlink satellite internet network, which serves customers across 164 countries, territories and markets worldwide.
Starlink currently generates the majority of the company’s revenue and has become a key pillar of its long-term growth strategy.
Strong Retail and Institutional Demand Underpins Offering
SpaceX took an unconventional approach to its public listing by allocating 30% of the offering to retail investors and determining the IPO price before conducting the traditional roadshow process typically used to market new share offerings.
Demand proved exceptionally strong across both retail and institutional investors.
According to Bloomberg News, retail demand exceeded $100 billion, while institutional appetite was also substantial. The Wall Street Journal reported that BlackRock alone submitted an order worth approximately $5 billion.
The overwhelming interest highlights investor confidence in Musk’s vision and reinforces expectations that SpaceX’s stock market debut will be one of the most closely watched trading events in recent years.
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