Analyst: SpaceX float is huge
Today may be remembered as the day Elon Musk could become the world’s first trillionaire and the day SpaceX entered the public markets, according to Ipek Ozkardeskaya, senior analyst at Swissquote:
"The company already made history yesterday by selling 555.6 million shares priced at $135 each, raising the $75 billion that it was looking for and giving the company nearly the $1.8 trillion valuation that it was targeting. It equals the combined value of the 29 biggest IPOs in US history since 2000 – adjusted for inflation – including Meta, Google, Hilton, Airbnb, DoorDash, Uber, Snowflake and GM."
"Yes, it’s huge. So today, everyone will be watching SpaceX leave the launchpad. In yesterday’s note, I discussed in detail what to expect from this IPO today, and in the coming weeks and months, for those who are interested in what the future could hold for the company and for the rest of the market."
Introduction: SpaceX raises $75bn in world’s biggest IPO
Good morning. Elon Musk’s SpaceX is set to debut on the US stock market today following a record-breaking initial public offering. The question remains whether its shares will soar as high as the company’s ambitions.
Shares in the rockets-to-satellites-to-AI company will begin trading on Wall Street today after SpaceX raised $75 billion through its IPO.
The listing will place SpaceX among the largest public companies globally and could see Musk become the world’s first trillionaire later today.
Last night, SpaceX announced it had raised $75 billion in a record-breaking IPO, valuing the company at approximately $1.77 trillion. The company successfully sold 555,555,555 shares of its Class A common stock at $135.00 per share.
Banks underwriting the deal have been granted an "over-allotment option" to purchase an additional 83.3 million shares, potentially increasing the IPO size to about $86 billion.
SpaceX attracted orders exceeding three times the amount of shares offered, according to the Financial Times, with strong demand from both institutional and retail investors. This demand could drive SpaceX’s shares higher today, as those who missed out or received fewer shares than desired seek to invest.
This robust demand emerged despite concerns regarding the company’s valuation, which was priced at 92 times last year’s revenues—a notably high multiple.
Investment research firm Morningstar recently estimated SpaceX’s value at $63 per share, less than half the IPO price of $135, and cautioned about "a major disconnect between market expectations and underlying fundamentals."
Michael Field, Morningstar’s chief equity strategist, advised investors to avoid the IPO and wait for "a more attractive entry point down the line."
All attention will be on the US markets today to observe SpaceX’s share performance.
The agenda
7am BST: UK GDP report for April
2.30pm BST: US stock market trading begins
3pm BST: University of Michigan Consumer Sentiment survey
