SpaceX Sets Record with $85.7 Billion IPO
Space Exploration Technologies (NASDAQ: SPCX) has achieved the largest IPO in history, raising $85.7 billion, more than double the previous record. The company went public earlier this month, marking a significant milestone in the financial landscape.
Historically, the performance of major IPOs has been mixed. For instance, Saudi Aramco’s 2019 IPO raised $38 billion but saw a 3-month return of -23.3%. In contrast, Visa’s 2008 IPO raised $28 billion and yielded a 3-month return of 91.5%. Recent studies indicate that most IPOs underperform comparable companies in their first year, with an average return skewing negative.
SpaceX’s valuation soared to $2.2 trillion following the IPO, but analysts warn about potential dilution. The company sold only about 4% of its shares to public investors, raising concerns about share availability in the coming year, including a significant unlock in August that could double current share supply.
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