SpaceX Goes Public with Historic IPO
SpaceX started trading on the Nasdaq with an initial share price set at $150 on Friday, following what is now the largest IPO ever. The stock quickly climbed above $160, pushing the company’s market value past $2 trillion.
The company had initially priced its shares at $135, marking an 11% increase at launch, although trading desks had anticipated an opening closer to $175. As the market opened, the share price surge significantly boosted the company’s valuation. Through this IPO, SpaceX raised a staggering $75 billion by selling 555,555,555 shares of its Class A common stock, and around 100 million shares have been traded so far.
Elon Musk, alongside Gwynne Shotwell, SpaceX’s President and COO, took part in the opening bell ceremony—Musk joined remotely from Texas, while Shotwell rang the bell in New York City. Earlier that day, the company successfully launched a Falcon 9 rocket, placing 29 Starlink satellites into low Earth orbit from Cape Canaveral.
In an interview, Shotwell emphasized that SpaceX aims to attract long-term investors, suggesting that their focus rests on future ambitions instead of short-term profits. “We didn’t even know if we’d go public,” she mentioned. “Investors should realize we’re working on very futuristic projects.”
She also highlighted the significant interest from retail investors, connecting it back to Musk’s vision for accessibility in space. “He wants to make space available for everyone,” Shotwell stated. “The goal was to let the public invest, and a lot of retail participants joined in.”
When asked about potential business risks, Shotwell expressed confidence, saying she doesn’t foresee any major concerns for the company moving forward. “There’s nothing on the horizon that worries me,” she noted, though she remained cautious about the technologies they are exploring.
The IPO generated substantial commissions for the lead underwriters, totaling around $500 million. Goldman Sachs and Morgan Stanley are set to receive about $100 million each, while Bank of America, Citigroup, and JPMorgan Chase will take home approximately $75 million each.
