SpaceX's stock skyrocketed on its first day of trading after the company pulled off the largest initial public offering in history. The offering raised $85.7 billion following a greenshoe exercise, according to Seeking Alpha. Investors responded with fervor, making the newly public company arguably the most popular stock in the market.
The historic IPO dwarfs all previous records, cementing SpaceX's position as the dominant force in commercial space. The company's debut comes amid heightened investor appetite for space-related equities. Some market participants view RocketLab as a more reasonably priced alternative to SpaceX.
The $85.7 billion figure reflects full exercise of the overallotment option, per Seeking Alpha. Bloomberg reports that the Bank of Japan raised its benchmark rate to the highest level since 1995, though that move is unrelated to the IPO. Asian stock markets wavered as investors assessed a relief rally tied to the reopening of the Strait of Hormuz.
SpaceX's public listing provides retail investors their first opportunity to own shares in the company. The offering could accelerate capital deployment for Starship development and Starlink expansion. However, the stock's rapid ascent raises questions about valuation sustainability.
Critics caution that SpaceX's lofty valuation leaves little room for error, and the space industry remains inherently risky. Technical hurdles or regulatory delays could dampen near-term returns.