SpaceX enjoyed a remarkable start to life as a publicly traded company, with its shares opening at $150 on their first day of trading on the Nasdaq. The opening price represented an 11 per cent increase on the $135 per share IPO price.
The stock continued its upward trajectory during the trading session, climbing to a peak of $176 and briefly pushing the company’s market capitalisation close to $2.3 trillion. By the close of trading, shares had settled at $160.95, marking a gain of 19 per cent from the IPO price.
The strong debut had been widely anticipated, with Bloomberg reporting that the initial public offering was oversubscribed by four times. As a result, many institutional investors were unable to secure their desired allocations and turned to the open market to purchase shares.
Investor demand has also been fuelled by SpaceX’s relatively limited public float, with only around four per cent of the company’s shares available for trading. The remaining shares continue to be held by early investors and employees.
Additionally, the company successfully persuaded major indices, including the Nasdaq 100, to revise their inclusion rules, allowing SpaceX to join them within days rather than months. This is expected to generate further demand as index-tracking funds begin purchasing the stock.
Retail investor interest has also been significant. Trading platform Robinhood reported record levels of activity in the hours following SpaceX’s landmark market debut.
The listing has delivered one of the most lucrative outcomes in venture capital history. Founders Fund, which invested $600 million in SpaceX and holds a three per cent stake, is estimated to have generated returns exceeding $50 billion at the IPO price, according to Bloomberg. Andreessen Horowitz’s holding is valued at more than $10 billion, while Sequoia’s stake is worth in excess of $20 billion.
The debut also propelled founder Elon Musk to a historic milestone, making him the world’s first trillionaire. According to The New York Times, approximately 4,400 current and former SpaceX employees are expected to become millionaires, while around 400 are set to attain centimillionaire status as a result of the company’s successful flotation.
