SpaceX IPO set to blast off, but valuation gravity could pull hard (SPCX)
Briefing.com Summary:
SpaceX (SPCX) is scheduled to launch its IPO on the Nasdaq on Friday (pricing Thursday night), June 12, with the company offering 555.6 mln shares of Class A common stock at an expected IPO price of $135 per share. At that price, the deal would raise roughly $75 bln, with an underwriter option for another 83.3 mln shares that could lift proceeds to nearly $86 bln, making SPCX poised to become the largest IPO of all time.
The IPO is being led by Goldman Sachs, Morgan Stanley, BofA Securities, Citigroup, and J.P. Morgan, which are acting as representatives for the underwriters. The size and prestige of the underwriting syndicate reinforce the offering’s importance as a bellwether deal for the IPO market, while also signaling that institutional allocation, aftermarket support, and index-fund positioning will be closely watched.
Demand appears to be exceptionally strong. According to Bloomberg, SPCX has already received more orders than shares available, while separate reporting indicates the book is roughly 2x covered, making it a near certainty that the IPO will price above the $135 reference price. That creates the classic tension for a mega-hyped IPO: strong order-book momentum may fuel a powerful first trade, but an even richer valuation also raises the risk that the stock fizzles once the scarcity premium fades.