Business News | SpaceX Listing a Test for Upcoming Big-ticket IPOs of AI Companies
Get latest articles and stories on Business at LatestLY. SpaceX raised a record-breaking USD75 billion from its IPO at a fixed price of USD135 per share. The IPO drew interests from both retail investors as well as big asset managers, family offices and high networth individuals, reports said.
Texas [US], June 12, (ANI): SpaceX's mega stock market listing will be keenly watched for signals on investor interest for the two AI heavyweights that are slated to go public later this year.
Both Anthropic and OpenAI have filed confidentially for their stock market debut amid widespread frenzy surrounding the AI technology. Shares of AI semiconductor makers have zoomed manifold catapulting some of them into the elite trillion-dollar club.
SpaceX raised a record-breaking USD75 billion from its IPO at a fixed price of USD135 per share. The IPO drew interests from both retail investors as well as big asset managers, family offices and high networth individuals, reports said.
WSJ reported that Blackrock put in an order to buy shares worth USD5 billion. The SpaceX IPO, which has become the largest so far valuing the company at USD1.77 trillion, will make its owner Elon Musk, the world's first trillionaire as soon as the shares are listed on Friday.
A larger chunk of SpaceX shares, than what is usually allocated will go to retail investors as Musk relies on a legion of his fans to back his ambitions. Concerns around its valuation have been raised as the company stays unprofitable with a loss of USD5 billion and a revenue of USD18 billion last year.
Exchanges will be under pressure to demonstrate that they can handle big-ticket listings with massive order volumes and avoid a repeat of the glitches that surrounded the Facebook listing in 2012.
SpaceX's USD75 billion proceeds is more than double of the previous record holder Aramco. The IPO has made the rocket, satellite and AI company the first US trillion-dollar debut and seventh-largest US company by market capitalization.
Musk upended the usual IPO playbook by launching a fixed price for his IPO and not giving a range for share prices as is the norm. That he chose a fixed price for his offering and not a range shows the confidence Musk exudes.
The recent boom in AI stocks has raised the bet for SpaceX shares even as Musk aims to take his AI empire to space by building data centres in orbit. (ANI)
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