SpaceX raises record $75B in world's biggest IPO
What's the story
SpaceX, Elon Musk's space and AI conglomerate, has officially priced its shares at $135 each. The company has raised a whopping $75 billion from the sale of its 555.6 million shares to underwriters. This makes SpaceX's initial public offering (IPO) the largest in history, surpassing Saudi Aramco's 2019 debut on Riyadh's exchange that raised $25.6 billion. The company, officially known as Space Exploration Technologies Corp., will trade on NASDAQ under the SPCX ticker symbol.
Pricing approach
SpaceX takes unconventional route for IPO
Unlike traditional IPOs, SpaceX took an unconventional route by setting its share price ahead of time. The company tested the $135 target with investors ahead of its official roadshow, the Financial Times reported. This strategy drew four times the demand for shares, according to Bloomberg. As trading begins today (local time), SpaceX's share price could fluctuate but institutional investors and retail buyers are reportedly eager to buy into this 24-year-old tech company.
Wealth projection
Musk could become world's 1st trillionaire
The IPO could make Musk the world's first trillionaire. He owns nearly 850 million Class A shares with one vote each and another 5.6 billion Class B shares with 10 votes per share. The latter includes a billion shares based on a far-fetched assumption that a million people will eventually live in a SpaceX colony on Mars.
Shareholder gains
Other beneficiaries of the offering
The IPO will also benefit Antonio Gracias, founder and CEO of Valor Management and Musk's early backer, who will receive 503.4 million shares worth $68 billion at the IPO price. Other beneficiaries include SpaceX board member and investor Luke Nosek with 33 million shares, and COO Gwynne Shotwell with nearly 12.6 million shares. The offering will also reward about 400 venture capitalists who invested in SpaceX during its two decades as a private company, raising $40 billion in private capital.