SpaceX has increased the amount raised through its initial public offering to $85.7 billion after the offering’s underwriters exercised their option to buy the maximum number of additional shares. The company had initially raised $75 billion, already making the listing the largest IPO on record.
The underwriters purchased an additional 83.3 million Class A shares at the IPO price of $135 each. SpaceX had granted them a 30-day option to buy those shares as part of the offering, according to the company’s IPO pricing announcement.
Proceeds Will Fund Debt Repayment and Expansion
SpaceX plans to use part of the proceeds to repay about $20 billion in debt connected to legacy loans involving X, formerly known as Twitter, and artificial intelligence company xAI. Both businesses were combined with SpaceX before the public listing.
The remaining funds will support the expansion of the company’s AI computing infrastructure, launch facilities, and Starlink satellite internet business. SpaceX outlined its planned use of proceeds and other offering details in its regulatory filing.
The company sold 555.56 million shares in its initial offering before the underwriters exercised the additional purchase option. SpaceX’s shares trade under the ticker SPCX.
Shares Rise After Nasdaq Debut
SpaceX began trading on the Nasdaq Stock Market on Friday, June 12, opening at $150 per share compared with its $135 IPO price. Its shares climbed 19% during the first day of trading, lifting the company’s market value above $2 trillion.
The stock rose again on Monday following the announcement that the underwriters had exercised the full option. The gains pushed SpaceX’s market capitalization above that of chip manufacturer TSMC.
The listing also increased the estimated value of Elon Musk’s holdings in SpaceX and his other businesses. Based on calculations published after the IPO, Musk became the first person whose estimated net worth exceeded $1 trillion.
SpaceX’s investor relations page lists its IPO announcements, regulatory filings, presentations, and future financial updates. The company has said it will publish quarterly and annual results through its website and X account.
Featured image credits: Wikimedia Commons
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