SpaceX on Thursday priced the biggest ever US initial public offering at $135 per share, raising a record $75 billion on the sale of 555.56 million shares and valuing Elon Musk’s rocket and spacecraft manufacturer at $1.77 trillion. This makes it one of the world’s most valuable companies.
SpaceX will rank seventh among US listed firms when its shares begin trading on the Nasdaq on Friday, though it lost money last year, and other mega caps far outpace its revenue. The valuation surpasses companies such as JPMorgan Chase, Berkshire Hathaway, Eli Lilly, Meta Platforms, and Musk’s own Tesla. The sale breaks the previous record for the largest ever IPO held by state-run oil giant Saudi Aramco, which raised $25.6 billion in December 2019.
SpaceX set aside 30 percent of shares for retail buyers and decided on Thursday’s offering price before the roadshow that bankers and investors have long used to negotiate IPO terms. The company communicated the IPO price just after 3 pm Eastern Time, while US markets were still open, in a free writing prospectus filed with the Securities and Exchange Commission, before issuing a press release half an hour later.
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Typically, the pricing meeting and announcement take place after regular trading closes at 4 pm. Musk will hold 82 percent of SpaceX’s voting power after the IPO.
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