SpaceX will begin trading on the US stock market on Friday, marking the largest initial public offering (IPO) in history, according to a document released on Thursday by the US Securities and Exchange Commission (SEC).
Traditionally, major companies ring the opening bell on their first trading day, a ceremony set to take place at Times Square, headquarters of the Nasdaq exchange, where SpaceX shares will be listed.
Space X CEO Elon Musk reportedly arrived in the New York area on Tuesday, according to his Jet Tracking account on Bluesky.
The company aims to raise $75 billion through its IPO, tripling the record previously held by Saudi Aramco, which raised $25.6 billion in 2019.
Based in Starbase, Texas, SpaceX has the option to issue additional shares depending on demand, potentially increasing the total proceeds to $86 billion.
SpaceX’s valuation now stands at $1.765 trillion, surpassing Saudi Aramco’s $1.7 trillion valuation at the time of its record-breaking IPO. This places it among the world’s top ten largest companies by market capitalisation.
Jay Ritter, an IPO expert at the University of Florida, cautions that SpaceX’s stock could surge significantly once trading begins, with institutional investors reportedly demanding four times the available shares.
SpaceX will allocate nearly a third (30%) of its new shares to individual investors, a rare move according to CNBC.
Despite this allocation, individual investors are expected to fall short, with Bloomberg reporting demand for up to $100 billion worth of shares among small shareholders.
Many retail investors are drawn to Elon Musk’s vision for SpaceX as a diverse, multi-faceted conglomerate encompassing rockets, artificial intelligence, implantable chips, satellite internet, and social media networks.
The company has faced challenges, however, with slower growth last year and a $5 billion loss anticipated in 2025 due to substantial investments in artificial intelligence.
