SpaceX fixes IPO at $135 a share for a $1.75tn valuation and a record listing
Companies going public almost always leave the price for last. They set a range, send executives on a roadshow, take the temperature of the institutions, and let demand decide where the shares land. SpaceX has decided to do it backwards.
The company plans to fix its IPO price at $135 a share before the roadshow even begins, according to a person familiar with the matter, targeting a record $75bn raise.
The mechanics are worth pausing on, because they are unusual to the point of being a statement. Fixing a price ahead of bookbuilding removes the ritual by which investors negotiate valuation down. It tells the market that the terms are the terms.
At $135 a share across roughly 555.6 million shares, the raise would be the largest in history, and it implies a valuation of about $1.75tn. SpaceX is aiming to debut on the Nasdaq under the ticker SPCX,...
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