SpaceX opens at $150, an 11% pop for the most anticipated debut in history

In a historic debut, SpaceX launched its public trading journey with shares opening at $150, marking an impressive 11% increase from its IPO pricing of $135. This anticipated rise comes as no shock, given that the company’s initial public offering (IPO) was significantly oversubscribed, with demand exceeding supply by four times, as reported by Bloomberg. The fervent interest in SpaceX shares can be attributed to the limited availability of stock for public trading, with only about 4% of shares accessible. The vast majority remains held by early investors and employees. Furthermore, SpaceX successfully advocated for changes in the inclusion rules of several indexes, including the Nasdaq 100. As a result, the company is set to join these indexes shortly, boosting demand and prompting significant buying activity from larger institutions. This IPO marks a landmark achievement in venture capital, with returns for investors like Founders Fund, which invested $600 million and now holds a 3% stake, projected to exceed $50 billion based on the IPO price. Other major stakeholders, such as Andreessen Horowitz and Sequoia Capital, have seen their investments balloon to valuations of over $10 billion and $20 billion, respectively. The surge in stock price has likely propelled founder Elon Musk into the ranks of the world’s first trillionaires. Additionally, a staggering 4,400 current and former SpaceX employees are expected to become millionaires, while about 400 will achieve centimillionaire status following this monumental event.