Retail investors are willing to buy back more than $70 billion worth of SpaceX stock - Bloomberg
Cryptocurrency traders are betting that the company's valuation will reach $2.2 trillion.
Retail investors are willing to buy up far more SpaceX stock than is reserved for them / Photo: Photo Spirit / Shutterstock.com
The initial public offering of SpaceX shares has attracted bids from retail investors for more than $70 billion, Bloomberg sources reported. Thus, with the IPO volume of $75 billion, which may become the largest in the history of the stock market, a significant part of the demand from retail investors will remain unsatisfied, the agency explains. Private investors may receive at least 20% of the shares offered in the offering, Bloomberg sources say. Earlier similar figures were mentioned by Reuters and Financial Times interlocutors.
What this means for the market
If many of Elon Musk's fans fail to get the shares they want in the IPO, it could spur demand once stock trading begins, Bloomberg writes. Musk has built up a large army of private investors over the years of leading Tesla. BNP Paribas analyst James Picariello estimates that about 40% of Tesla shares are owned by retail investors, the agency writes.
Also, according to Bloomberg sources, SpaceX has received applications from about 1 thousand institutional investors. The agency's interlocutors said that the main parameters of the offering, including the expected price of $135 per share and the volume of the offering of 555.6 million shares, are likely to remain unchanged. In this case, SpaceX will raise about $75 billion at the company's valuation of about $1.8 trillion.
Final decisions have not yet been made, and the parameters of the deal, including the share of shares for retail investors, may change, specifies Bloomberg. SpaceX representative did not respond to the agency's request for comment.
Is the company's valuation likely to rise?
Cryptocurrency traders are ignoring the implied price of SpaceX's IPO and valuing Elon Musk's space, satellite and AI company markedly higher ahead of the start of exchange trading, Bloomberg noted. Perpetual futures (perpetual futures) tied to SpaceX shares with no expiration date were trading around $165 on cryptocurrency exchanges Hyperliquid and Binance on Thursday morning in New York. That equates to a company valuation of about $2.2 trillion.
This article was AI-translated and verified by a human editor
