SpaceX’s (SPCX) stock will start trading on Friday following the biggest IPO in history.
The rocket and satellite company priced its IPO Thursday night at $135 a share ahead of today’s debut on the Nasdaq (^IXIC), trading under the ticker SPCX.
SpaceX offered 555.6 million shares to hit a record $75 billion raised. Underwriters are holding a “greenshoe” — or option to sell additional shares if demand outstrips the initial allotment — of approximately 83 million shares, worth around $11.2 billion. The terms of the offering set an initial stock market value for SpaceX at around $1.78 trillion.
The biggest open question is how much ends up with retail investors. SpaceX is reportedly targeting a retail allocation of roughly 30% — far above the 5% to 10% typical of most IPOs — but the final figure remains unsettled. Reports suggest SpaceX drew retail orders in excess of $100 billion.
The company reportedly told investors it would stop taking orders Wednesday, a day earlier than usual, giving SpaceX and its bankers all of Thursday to determine who gets shares in the largest IPO ever.
In addition, SpaceX’s IPO shares are running four times oversubscribed, per Reuters, which indicates strong demand; however, this amount is often inflated by institutional investors to make sure they receive enough stock for their clients. In actuality, demand could be less, adding to the uncertainty.
On Friday morning, Nasdaq’s market makers will begin matching buy and sell orders to find an opening price, a process that, for large, highly watched IPOs, can stretch well past the opening bell.
By Friday afternoon, the world’s most valuable private company will be private no longer, and the market, not SpaceX, will set the price from then on.
Where the stock opens compared to its $135 offer price, and where the stock closes on the first day of trade, will provide judgment on whether SpaceX’s market debut is an initial success.
Pras Subramanian is Lead Transportation Reporter for Yahoo Finance. You can follow him on X and on Instagram.
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