SpaceX tops $2tr valuation in Nasdaq debut after record $75bn IPO

NEW YORK: SpaceX shares surged 19% in their Nasdaq debut on Friday, pushing the company's market value above $2 trillion following its record-breaking $75 billion initial public offering.

The stock closed at $160.95 per share, giving the rocket and satellite company a market capitalisation of approximately $2.1 trillion and making it the sixth-largest listed company in the United States by market value.

The rally also made founder Elon Musk the world's first trillionaire, according to market estimates.

SpaceX had priced its IPO at $135 per share, raising $75 billion through the sale of 555.56 million shares in what became the largest IPO ever completed in the United States, surpassing Saudi Aramco's 2019 listing.

More than 510 million SpaceX shares worth about $84 billion changed hands during the first day of trading. The stock opened at $150 and continued to rise throughout the session.

The company's valuation now exceeds that of Broadcom and trails Amazon, which has a market value of about $2.6 trillion.

Despite generating $18.7 billion in revenue, SpaceX remains unprofitable. Its valuation implies a price-to-revenue ratio of roughly 112, significantly higher than most major technology companies.

The IPO drew strong interest from both institutional and retail investors, with retail buyers receiving around 20% of the allocation, well above typical IPO levels.

SpaceX executives, including President Gwynne Shotwell and Chief Financial Officer Bret Johnsen, marked the debut by ringing the opening bell at Nasdaq's MarketSite in New York, while Musk held a separate event for employees in Texas.

The company said its addressable market spans approximately $28.5 trillion, which it described as the largest commercial opportunity in history. SpaceX also said it has been responsible for more than four-fifths of the total mass launched into orbit globally over the past three years.

Analysts cautioned that the stock could remain volatile due to its relatively limited public float and high valuation. Morningstar recently estimated SpaceX's fair value at around $780 billion, while CFRA initiated coverage with a sell rating.

The company is expected to gain entry into the Nasdaq 100 within about a month under the exchange's fast-track inclusion rules, potentially increasing demand from index funds and exchange-traded funds.

The listing has also triggered portfolio adjustments across the technology sector. Shares of other space and satellite companies declined on Friday, with Planet Labs falling 9% and EchoStar dropping 11%.

The debut follows a series of major developments for SpaceX and Musk's broader business empire, as investors continue to bet on growth in space technology, satellite communications through Starlink, artificial intelligence and related industries.