Prime Highlights :
- SpaceX raised a record $75 billion in the largest U.S. IPO, valuing the company at $1.77 trillion.
- The offering places SpaceX among the most valuable publicly traded companies globally.
Key Facts :
- Shares were priced at $135 each, with 555.56 million shares sold in the offering.
- Starlink remains SpaceX’s largest revenue contributor, accounting for the majority of company revenue.
Background :
SpaceX has wrapped up the biggest initial public offering in U.S. history, raising about $75 billion from the sale of 555.56 million shares and hitting a valuation of around $1.77 trillion.
The company priced its shares at $135 each, placing the space, satellite and artificial intelligence provider among the most valuable publicly traded companies in the United States. The valuation surpasses several major corporations, including Meta, Tesla, JPMorgan Chase, Berkshire Hathaway and Eli Lilly.
The offering breaks the previous IPO record set by Saudi Aramco, which raised $25.6 billion in 2019. The debut of SpaceX is thus a big moment for the company’s CEO, Elon Musk, and reflects great interest among investors in big technology and aerospace companies.
The stock of SpaceX will begin to trade on Nasdaq, and the performance of the stock post-IPO will be observed by the market players. Experts also pointed out that performance over time should matter more to SpaceX than its performance on the first day of trading.
Since 2002, SpaceX has earned most of its revenues through Starlink, its satellite internet service, which caters to more than 160 countries. In addition, SpaceX is among the biggest players in commercial space and offers AI services through its subsidiary, xAI.
SpaceX followed an unusual method of IPO since 30% of its stock was allocated to retail investors, while the company decided to announce its pricing before the usual roadshow process. In addition, Musk will maintain significant control over the company since he has around 82% voting power.
