SpaceX (SPCX) made a dramatic entrance onto the Nasdaq on Friday, with shares opening at $150, an 11% premium to the IPO price, before climbing more than 20% during the session as investors rushed to gain exposure to Elon Musk’s latest market giant.
The rocket and satellite company priced its shares at $135 on Thursday night, raising a record $75 billion and securing an initial market value of roughly $1.77 trillion. The scale of the flotation immediately placed SpaceX among the largest listed companies in the United States, ahead of Broadcom and comfortably above Tesla.
Investor enthusiasm was evident from the opening bell, although the stock’s sharp swings suggested that the excitement could be accompanied by considerable volatility in the days ahead. Shares initially surged more than 30% before giving back part of those gains as trading progressed.
Record Demand Fuels SpaceX IPO
Demand for the IPO was exceptionally strong. SpaceX sold 555.6 million shares while underwriters retained the option to sell an additional 83 million through a so-called greenshoe allocation should demand continue to exceed supply.
Reports indicate the offering was four times oversubscribed, although such figures can sometimes exaggerate true demand as institutional investors often submit larger orders than required to secure allocations for clients. Even so, interest from both professional and retail investors appeared substantial.
One of the most closely watched aspects of the flotation has been retail participation. SpaceX reportedly aimed to allocate around 30% of shares to individual investors, far above the 5% to 10% typically seen in major IPOs. Retail orders are believed to have exceeded $100 billion, highlighting the scale of public interest surrounding the company.
Retail Investors Rush Into SpaceX Shares
Early trading data from Vanda Research suggested retail investors wasted little time getting involved. The firm said SpaceX was comfortably the most purchased stock among individual investors on Friday, with net buying running at more than three times the level recorded for Nvidia.
Retail turnover had already reached $453 million by midday, putting the stock on course for one of the largest IPO debuts ever seen among private investors.
US Markets Rise as Geopolitical Tensions Ease
Away from SpaceX, broader US markets also moved higher as investors reacted to reports suggesting the United States and Iran are nearing an interim agreement that could lead to the reopening of the Strait of Hormuz.
The Dow Jones Industrial Average rose 0.8%, the S&P 500 added 0.5% and the Nasdaq gained 0.3%.
Oil prices fell sharply on hopes of easing tensions, with Brent crude dropping more than 3%, while fresh economic data offered a modest boost to sentiment after US consumer confidence improved from record lows and inflation expectations came in below forecasts.
