Debut of SpaceX raises US$75bn

SpaceX officially launched its initial public offering (IPO) on NASDAQ, raising US$75 billion—the largest in history—and securing a valuation of US$1.77 trillion. The record-breaking deal cemented Elon Musk’s status as the world’s first trillionaire, despite SpaceX reporting a US$5 billion loss in 2023. The IPO priced at US$135 per share, selling 555.56 million shares, and surpassed Saudi Aramco’s 2019 listing by more than double. The listing marks a pivotal moment for Wall Street, testing the so-called ‘Musk premium’ that has driven Tesla’s valuation above US$1 trillion. Investors will watch closely for signs of demand ahead of upcoming IPOs from AI firms like Anthropic and OpenAI. SpaceX’s debut also serves as a benchmark for handling massive order volumes, following technical issues during Meta’s 2012 IPO. Trading began midday as exchanges balanced supply and demand, with 30% of shares allocated to retail investors, reflecting Musk’s broad appeal. Analysts warn retail investors—who often drive momentum—may face risks if the stock’s trajectory reverses. Underwriters could sell additional shares within 30 days, potentially increasing SpaceX’s valuation further. The company is expected to join the NASDAQ 100 index within a month under new fast-track rules, boosting demand from passive funds tied to the index. Some analysts predict the IPO could trigger portfolio reshuffling, with investors shifting from other tech giants into SpaceX. The offering underscores Musk’s long-term ambitions in space, AI, and communications, redefining Wall Street’s approach to mega-IPOs.