SpaceX had a remarkable debut as a publicly traded company, with its stock soaring to $150 per share when it began trading on the Nasdaq, marking an increase of approximately 11% from the initial IPO price of $135 set the prior day.
During midday trading, the stock price peaked at $176, elevating the company’s market valuation to nearly $2.3 trillion, before ultimately closing 19% higher at $160.95.
This surge in stock value was anticipated. The IPO was reportedly oversubscribed by a factor of four, indicating that numerous institutional investors did not receive shares and are likely purchasing them in the market.
Part of the heightened interest in SpaceX stems from its limited share availability, with around 4% of its stocks open to public trading, while the remaining shares are retained by earlier investors and employees. The company has also successfully advocated for modifications to inclusion rules for major indexes, such as the Nasdaq 100, allowing it to join these lists in the near future, which is expected to drive further demand for its shares.
Robinhood reported an influx of activity on its platform following SpaceX’s significant market entry, indicating a surge in user engagement.
This market launch represents one of the most significant benefits in venture capital history. The Founders Fund, which invested $600 million in SpaceX, is projected to see its 3% stake yield returns exceeding $50 billion based on the IPO price. Andreessen Horowitz and Sequoia, meanwhile, hold stakes currently valued at over $10 billion and $20 billion, respectively.
With a debut price of $150, founder Elon Musk is now recognized as the world’s first trillionaire. Reports suggest that approximately 4,400 current and former employees of SpaceX will become millionaires, while around 400 will achieve centimillionaire status.
This article was initially published at 11 a.m. ET and has since been updated with adjusted share prices and additional information.
