SpaceX hauled in $85.7 billion through its initial public offering after underwriters exercised the full greenshoe overallotment option. The company had initially raised $75 billion on Thursday, marking the largest IPO in history. Shares of the stock, trading under the ticker SPXC, surged 19% on day one, pushing the company's valuation past $2 trillion.
The blockbuster debut surprised even seasoned dealmakers. One veteran involved in the process told Yahoo Finance the scale of demand was unexpected. Perpetual market traders, who had early access to SpaceX through a blockchain-based prediction platform, saw their pricing closely track the eventual stock market value, highlighting a new disruptor to Wall Street's traditional IPO process.
Rival space stocks initially sold off on the news, but KeyBanc analysts urged clients to buy the dip. Firefly and Rocket Lab, the analysts argued, stand to benefit from the halo effect of SpaceX's record-smashing listing. The broader market also rallied, with the Dow Jones Industrial Average jumping 500 points to a fresh record, partly on optimism over a potential Iran peace deal.
Despite the euphoria, some caution persists. The high valuation hasn't yet spooked investors, according to Motley Fool, but one columnist explained why they are not buying at these levels. Meanwhile, Mirae Asset apologized to clients after failing to secure the IPO allocation they had promised, underscoring the intense demand that created winners and losers even before the first trade.