SpaceX shares are expected to cost $135 at the IPO
Elon Musk’s space company SpaceX is selling its shares at a price of $135 each in the largest IPO in US history. This price was set on Thursday. According to insiders, 555.6 million shares are being offered. This brings in $75 billion for the group, giving it a total valuation of $1.77 trillion – a record for an initial public offering. The papers are scheduled to make their debut on the US technology exchange Nasdaq on Friday.
SpaceX immediately becomes the seventh most valuable listed company in the USA, overtaking heavyweights such as the bank JPMorgan, the pharmaceutical company Eli Lilly and Musk’s own electric car manufacturer Tesla.
The record was previously held by the Saudi oil company Aramco, which raised around $25.6 billion during its IPO in December 2019.
Even after stepping onto the trading floor, Musk remains in control of SpaceX with 82 percent of the shares. What is also unusual is that 30 percent of the shares were reserved for private investors. However, the high valuation of $1.77 trillion is met with skepticism by some analysts. SpaceX posted losses last year and sales lagged significantly behind those of other tech giants. The market value could even increase if the accompanying banks exercise their over-allotment option in the next 30 days.
