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SpaceX 'greenshoe'
SpaceX underwriters have exercised their overallotment of shares in the historic initial public offering, bringing total funds raised to $85.7 billion, according to an investor relations update Monday. Elon Musk's space and AI company initially raised $75 billion on Thursday, making it the largest IPO ever. Brokers Goldman Sachs and Morgan Stanley had the option to buy an additional 83.3 million shares as part of the "greenshoe" overallotment, which is typically exercised when the stock rises. The additional amount raised exceeds most tech IPOs on record. SpaceX staff wore green shoes on the trading floor Friday in recognition of the option. Priced at $135 per share, the stock soared 19% on Friday's debut, closing at around $161, pushing the company's valuation past $2 trillion. Shares climbed over 7% more on Monday morning. Musk told employees at SpaceX's Starbase headquarters in Texas on Friday that the company went public now to raise capital for "a significant growth phase." The funds are expected to complete and commercially fly Starship rockets—the largest ever built—which are designed to be fully reusable and deploy new V3 satellites to expand Starlink internet service. The rockets are still in testing. SpaceX also aims to build AI data centers in space (orbital data centers) and a massive chip factory with Tesla and Intel in Texas. Musk pitched space-based data centers as a solution for AI's power needs, though the technology remains unproven. SpaceX has a fraction of the revenue of tech megacaps and reported a $4.9 billion loss last year, with total losses exceeding $41 billion since founding. At Friday's close, its $2.1 trillion valuation represented 112 times last year's revenue.