SpaceX’s record initial public offering (IPO) has grown even larger after the offering’s underwriters exercised their option to buy the maximum number of additional shares.
The move raised SpaceX’s total IPO proceeds to $85.7 billion, up from the $75 billion it had initially raised.
The original amount was already enough to make the offering the largest IPO in history.
Underwriters Buy Extra Shares
The increase came after underwriters exercised the greenshoe option, a standard IPO mechanism that allows them to purchase additional shares when demand is strong.
SpaceX had initially sold 555.56 million shares at $135 each. After the IPO, underwriters bought another 83.3 million shares through the option, lifting the total amount raised to $85.7 billion.
Use of Funds
SpaceX has said it plans to use the IPO proceeds for several purposes.
The company plans to repay around $20 billion in debt linked to legacy loans tied to X, formerly known as Twitter, and Musk’s AI company xAI.
Both X and xAI were combined into SpaceX before the IPO.
The company will also use the funds to expand its AI compute infrastructure, improve launch infrastructure, and strengthen Starlink.
Over $2 Trillion Valuation
SpaceX started trading on the Nasdaq exchange on Friday. The company ended its first trading day with a valuation of more than $2 trillion.
The strong debut also helped Elon Musk become the world’s first trillionaire.
More Valuation Than TSMC
SpaceX shares climbed again on Monday after the company confirmed the larger IPO proceeds. The gains helped SpaceX move past the valuation of chipmaker TSMC.
The strong market reaction shows continued investor interest in SpaceX’s rockets, Starlink internet business and AI plans.
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