SpaceX IPO haul hits $85.7B after greenshoe exercise

SpaceX ↘3.56% said Monday its underwriters exercised the greenshoe option in full, lifting total IPO proceeds to $85.7 billion from $75 billion, according to Reuters.reuters
The stock jumped sharply on its first full trading day after debuting at $135 per share and surging 19% on Friday, pushing the company’s valuation past $2 trillion.cnbc
Goldman Sachs ↘0.23% and Morgan Stanley ↘0.80% led the deal and paid zero fees on the greenshoe tranche under a rare arrangement first reported by Bloomberg.yahoo

SpaceX IPO Raises $85.7 Billion After Underwriters Exercise Greenshoe Option

SpaceX announced on Monday that its underwriters exercised the “greenshoe” overallotment option in full, purchasing an additional 83.3 million shares and lifting the total proceeds from its initial public offering to $85.7 billion — cementing the deal as the largest IPO in history.cnbc

Record Demand Fuels Overallotment

The aerospace, satellite, and artificial intelligence company initially raised $75 billion when it priced 555.6 million shares at $135 each on June 11, with trading on the Nasdaq beginning the following day under the ticker SPCX. Investor appetite proved overwhelming: demand approached four times the offering size, with more than $250 billion in institutional orders alone, according to Reuters. Bloomberg reported that the IPO attracted interest exceeding four times the available shares before books closed.ksjd

The greenshoe provision gave the underwriting syndicate — led by Goldman Sachs and Morgan Stanley — the right to sell an additional 15% of shares, worth roughly $11.25 billion. Underwriters typically exercise that option when a stock trades above its IPO price, and SpaceX shares gave them ample reason: the stock surged 19% on its first day of trading to close at $160.95, then climbed another 20% on Monday to finish at $192.50.cnbc

A Unique Fee Structure

In a rare arrangement first reported by Bloomberg, SpaceX negotiated to pay zero fees on the greenshoe tranche, meaning Goldman Sachs, Morgan Stanley, and the other banks forfeited an additional $75 million they would otherwise have earned. The base deal carried an unusually thin gross spread of just 0.75%, translating to roughly $500 million in total compensation split among the banks — tied for the lowest percentage on record for a conventional IPO, according to University of Florida professor Jay Ritter.fortune

What Comes Next

SpaceX closed Monday’s session valued above $2 trillion, making it one of the world’s largest listed companies on only its second full trading day. The proceeds are expected to fund the company’s expansion into orbital data centers for artificial intelligence workloads. Analysts remain divided on the stock’s outlook: NewStreet Research initiated coverage with a $165 price target, while CFRA began with a “sell” rating and a 12-month target of $115.forbes