SpaceX IPO raises $85.7 billion after greenshoe exercise
Underwriters exercised SpaceX's greenshoe, raising total IPO proceeds to $85.7B after its record Nasdaq debut.
SpaceX’s initial public offering has grown to $85.7 billion after underwriters exercised their overallotment option, adding to what the company described as a historic market debut.
The company announced Monday that the full exercise of the underwriters’ option to purchase additional shares lifted the total amount raised above the $75 billion SpaceX brought in on Thursday. SpaceX had priced the offering at $135 per share.
The brokers on the deal, including Goldman Sachs and Morgan Stanley, had the option to buy an additional 83.3 million shares as part of the overallotment. The overallotment, commonly known as the "greenshoe", is bigger than almost all tech IPOs on record. The source article said underwriters typically exercise the overallotment when the stock rises.
SpaceX is the biggest IPO ever. After pricing at $135 per share, the stock climbed 19% in Friday’s debut and closed at around $161, pushing the company’s valuation past $2 trillion. Shares of SpaceX continued to rise on Monday, gaining more than 6% in their first full day of trading.
Elon Musk told employees gathered at SpaceX’s Starbase headquarters in Texas on Friday that he wanted to take the company public now to raise capital for "a significant growth phase."
According to the source article, the money is expected to help SpaceX build and run AI data centers in space, known as orbital data centers. Musk has pitched space-based data centers as a solution to AI’s power needs, though the technology remains unproven and comes with a host of associated risks.
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