SpaceX shares skyrocket as money raised hits $85.7 billion
Demand for SpaceX's shares was so strong that the banks running the sale exercised a so-called greenshoe option
SpaceX shares surged 20% on Monday as the company announced the raising of a record-breaking $85.7 billion. The second day of gains solidified SpaceX's impressive debut on Wall Street, surpassing previous largest IPOs and potentially making Elon Musk the world's first trillionaire. The stock rose 19.7% in Monday trading to $192.8, extending Friday's 19% gain after shares began trading on the Nasdaq at $135.
The surge in stock value put the company's market value at over $2.5 trillion, placing it among the six largest companies globally, just behind Amazon. Demand for SpaceX's shares was so strong that banks involved in the sale utilized a greenshoe option to sell additional shares when investors sought more than anticipated. SpaceX ultimately sold nearly 639 million shares, including more than 83 million extra shares, resulting in a total raise of $85.7 billion, exceeding the originally planned $75 billion.
Founded by Musk in 2002, SpaceX has since grown into a major satellite operator and incorporated his AI company, xAI, which includes the social media platform X, formerly Twitter. The company's immense valuation is based on the expectation that Musk will fulfill futuristic promises, including colonizing Mars and constructing space-based data centers using untested technology.
Written by urgent.news from The Hindu - Sci-Tech's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
