SpaceX, Elon Musk’s space and AI conglomerate, has officially priced its shares at $135 each, raising $75 billion from underwriters. The company, known as Space Exploration Technologies Corp., will trade under the SPCX ticker symbol on the Nasdaq. This deal makes SpaceX the largest initial public offering in history, surpassing Saudi Aramco’s $24.9 billion raise in 2019. At this price, Musk could become the world’s first trillionaire, with ownership of nearly 850 million Class A shares and 5.6 billion Class B shares. The company’s share price may fluctuate as active trading begins, but institutional and individual investors are showing strong interest, according to reports. SpaceX’s offering also includes an option to issue an additional 83.3 million shares, raising another $11 billion at the opening price.

The IPO pricing process was unusual, as SpaceX set the $135 share target well in advance of its roadshow. The company tested this price with investors before officially launching its marketing campaign, according to the Financial Times. Bloomberg reported that the offering attracted four times the available shares, indicating strong demand. Hyperliquid, a crypto betting market, currently prices SpaceX shares at $167, suggesting a potential 20% rise on the first day of trading. However, long-term challenges remain, as SpaceX must justify its high valuation through its ambitious projects, including the world’s largest reusable rocket and a new American chip fab.

The IPO will deliver significant gains to major shareholders, including Antonio Gracias, who will receive 503.4 million shares valued at nearly $68 billion. Other notable beneficiaries include Luke Nosek, with 33 million shares, and Gwynne Shotwell, who holds nearly 12.6 million shares. The offering also benefits the approximately 400 venture capitalists who supported SpaceX during its private years and a large pool of smaller investors who backed the company through special purpose vehicles (SPVs). However, some investors may not know the full extent of their gains until after the company’s lock-up period expires.

Source: techcrunch