NEW YORK – SpaceX shares jumped in their second day of trading on June 15, adding to gains following a blockbuster debut that instantly vaulted it into the ranks of the world’s most valuable public companies.
The stock climbed 20 per cent, extending June 12’s 19 per cent rally, to add US$412 billion (S$528 billion) in market value. Shares closed at US$192.46 on June 15, more than 42 per cent above their US$135 initial public offering (IPO) price.
The move boosts the company’s market value to more than US$2.5 trillion, putting it among the top six largest companies in the world.
At its current market capitalisation, it’s less than US$135 billion away from overtaking Amazon.com, which boasts a nearly US$2.7 trillion value.
SpaceX has exercised the IPO’s over-allotment option, which lets underwriters sell an additional 83.3 million shares, according to a statement Monday. The so-called greenshoe increases the amount raised to US$86.2 billion, or US$85.7 billion after subtracting the US$500 million of underwriting expenses listed in the prospectus.
A solid first-day performance for SpaceX assuaged fears about the market’s ability to absorb such a large IPO, helping pave the way for the potential IPOs from Anthropic and OpenAI, large competitors that could go public as soon as 2026. It helped bolster confidence in the artificial intelligence rally that’s driven most of the market’s gains this year.
“We’re not surprised to see that there’s initial demand,” said Max Gokhman, senior vice president at Franklin Templeton Investment Solutions. “There’s been so many investors, especially retail investors on the sidelines, who couldn’t get access.”
Retail traders bought as much SpaceX stock over its first two days of trading as they did across the entire US stock market last week, according to data from Vanda Research. Monday marked the first full trading session for the stock formally known as Space Exploration Technologies Corp., as shares opened a few minutes before noon on June 12 in New York, meaning it traded for just over four hours before the market close.
The IPO made founder Elon Musk the world’s first trillionaire, with a net worth that is more than three times that of the world’s second-richest person, Google co-founder Larry Page.
Following the steady launch, investors are turning attention back to the broader geopolitical and macro backdrop after the United States and Iran said they agreed to a deal to reopen the Strait of Hormuz this week, sending the S&P 500 Index up 1.7 per cent and the tech-heavy Nasdaq 100 up more than 3 per cent. In addition, this week will feature June 17’s Federal Reserve meeting, followed by the first press conference for the central bank’s new chairman, Kevin Warsh.
“The macro backdrop appears to be moving in a direction that is becoming more favourable, that could incentivise investors to continue to go out on the risk spectrum,” said Angelo Kourkafas, senior global investment strategist at Edward Jones.
To be sure, market watchers are anticipating volatility in SpaceX stock and potential pressure to the downside as shares currently in lockup after the IPO become available to trade in the coming months.
“What I think is going to be interesting is when that booster rocket of retail demand falls off, what happens when they start hitting the gravity of institutional investors and employees post-lockup starting to sell?” Gokhman said. “That’s really where that marginal buyer becomes increasingly important because now you’re increasing the float.”
Options contracts on SpaceX will begin trading on June 16, on exchanges including Cboe Global Markets and Nasdaq. Other options exchanges, including those owned by Intercontinental Exchange’s NYSE and Miami International Holdings, are also expected to list early next week. bloomberg
