On Monday, SpaceX IPO underwriters Goldman Sachs and Morgan Stanley exercised their 'green shoe' overallotment option for 83.3 million shares, boosting SpaceX's total fundraising to $85.7 billion and setting a new global IPO record. In the two days since its listing, SpaceX's share price has surged by more than 40%, pushing its market capitalization above $2.5 trillion.
$SpaceX (SPCX.US)$ The largest IPO in history has set a new record. With underwriters exercising the over-allotment option, SpaceX's total proceeds from this offering have risen to $85.7 billion, setting a new global IPO record.
According to an investor relations announcement, underwriters formally exercised the 'greenshoe' overallotment option on Monday, raising over $10 billion in addition to the initial $75 billion. This additional amount alone exceeds the IPO size of nearly all technology companies in history.
Underwriters typically choose to exercise this right when the stock price rises. SpaceX shares surged 19% on their first day of trading and rose another 19.6% the following day, closing at $192.50, pushing the company's market capitalization above $2.5 trillion. The stock continued to climb nearly 4% in U.S. after-hours trading.
In a message to employees last Friday at the Starbase headquarters in Texas, Musk stated that the decision to go public was aimed at raising capital for the company’s “significant growth phase.” The IPO proceeds are expected to fund the completion of Starship rocket development and advance commercial flights, while also supporting ambitious strategic initiatives such as orbital data centers and chip fabrication facilities.
The overallotment of 83.3 million shares has been finalized.
Goldman Sachs and Morgan Stanley served as underwriters for this IPO and held the overallotment option to purchase an additional 83.3 million shares. This option was formally exercised on Monday.
The 'greenshoe' option provides underwriters with flexibility during the stabilization period following IPO pricing—exercising it when share prices perform strongly not only secures additional gains but also sends a positive signal to the market.
SpaceX employees wore green shoes in the trading hall last Friday to pay homage to this mechanism, and Musk promptly reposted photos of the event on X.
Starship and Satellites: Clear Allocation of Funds
According to the company’s plan, the raised capital will primarily support two core business areas. The first is the Starship rocket program—the largest rocket ever built and launched, which remains in the testing phase and has so far carried only mock satellites. Its ultimate goal is full reusability.
The second initiative involves deploying the next-generation Starlink V3 satellites to significantly expand the coverage and capacity of the Starlink satellite internet service.
Additionally, SpaceX plans to build and operate AI data centers in orbit and intends to jointly establish a large-scale chip fabrication facility in Texas with Tesla and Intel, both of which are led by Elon Musk. Musk positions space-based data centers as a solution to AI's energy consumption challenges, although this technology has not yet been validated.
Editor/Liam