Space Exploration Technologies Corp. (SpaceX) increased its initial public offering proceeds to approximately $85.7 billion after underwriters fully exercised their overallotment option. The Elon Musk-led company originally raised $75 billion by selling 555.6 million shares at $135 each, marking the largest IPO ever completed and surpassing Saudi Aramco's $29 billion IPO in 2019. The greenshoe option exercise added roughly $10.7 billion in proceeds by selling an additional 83.3 million shares, bringing total shares sold to nearly 639 million. SPCX shares traded up around 11% at the time of reporting, having closed 19% higher on Friday.
Underwriters Exercise Additional 83.3M Share Option
Underwriters were granted the option to purchase an additional 83.3 million shares as part of the IPO, representing 15% of the original offering. The full exercise of the greenshoe option increased the total number of shares sold to nearly 639 million. Goldman Sachs, Morgan Stanley, BofA, Citigroup, J.P. Morgan, Barclays, Deutsche Bank, RBC Capital, UBS, and Wells Fargo Securities acted as book-running managers for the offering, according to The Fly.
Musk States SpaceX Could Reach $1 Trillion Revenue in 2030
Replying to a message on X, Elon Musk said SpaceX could record $1 trillion in revenue by 2030. "I think SpaceX might be able to reach approximately $1T revenue in 2030," he stated. "And I would be surprised if revenue is not greater than $1T in 2031," he stated in another post. CFRA initiated coverage of SpaceX with a 'Sell' rating, citing the company's "extremely ambitious growth strategy, elevated valuation expectations, and significant capital intensity."
Retail Investors Discuss Price Targets
Retail sentiment on Stocktwits trended in the 'extremely bullish' territory, amid 'extremely high' message volumes. One user expects the stock to surge to around $400 within a year. The stock is currently trading at around $174. Another user expects the company to release more shares to justify its valuation.
FAQ
What did SpaceX raise through its IPO greenshoe exercise?
SpaceX increased its total IPO proceeds to approximately $85.7 billion after underwriters fully exercised their overallotment option, adding roughly $10.7 billion to the original $75 billion raised.
How many shares did SpaceX sell in total during the IPO?
SpaceX sold a total of nearly 639 million shares as part of the IPO, including 555.6 million shares in the initial offering and an additional 83.3 million shares through the greenshoe option exercise at $135 per share.
What revenue forecast did Elon Musk provide for SpaceX?
Elon Musk stated in posts on X that SpaceX could reach approximately $1 trillion in revenue in 2030, and that he would be surprised if revenue is not greater than $1 trillion in 2031.
