People familiar with the matter indicate that the initial public offering for Space Exploration Technologies Corp (SpaceX) has been significantly oversubscribed, reflecting strong market demand for what is poised to be a record-breaking issuance.
Some sources note that the banks leading the offering are expected to stop accepting orders from institutional investors after the U.S. market closes at 4 p.m. New York time on Wednesday. SpaceX is the rocket, satellite, and artificial intelligence company founded by Elon Musk.
Closing the order book allows the banks time to evaluate further demand and provide pricing recommendations to the company. The IPO for SpaceX is anticipated to be priced on June 11, with trading commencing the following day. The company plans to issue 555.6 million shares at $135 per share, aiming to raise approximately $75 billion and achieve a valuation around $1.8 trillion.
Retail investors will still be able to submit orders for SpaceX shares on certain platforms after Wednesday's deadline for institutions. Reports suggest the company will allocate up to 30% of the offering to retail investors.
Anticipation for this IPO has been building steadily. The SpaceX offering is projected to become the largest on record, surpassing the $29.4 billion IPO of Saudi Aramco in 2019. The company has recently highlighted new revenue streams, emphasizing its capabilities in the artificial intelligence sector. SpaceX announced an agreement with Alphabet's Google on Friday. As part of a cloud services deal, Google will pay SpaceX $92 million monthly until 2029. Previously, SpaceX also disclosed a similar agreement with Anthropic PBC.
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