SpaceX IPO Raises Record $85.7 Billion After Greenshoe, Becomes Largest US Listing Ever

SpaceX Completes Greenshoe Exercise, IPO Raises Record $85.7 Billion

In the aerospace and space exploration sector, SpaceX has once again made history in capital markets. According to multiple media reports, after exercising the greenshoe overallotment option, the company's total initial public offering (IPO) proceeds have reached $85.7 billion, making it one of the largest IPOs in US stock history. This milestone not only cements SpaceX's position as the world's most valuable private tech company but also marks the official entry of commercial space into mainstream capital.

Greenshoe Mechanism Boosts Fundraising Beyond Expectations

The greenshoe mechanism, or overallotment option, allows underwriters to issue additional shares when market demand is strong. SpaceX received oversubscription from institutional investors during the IPO pricing phase, with sources saying the order book was covered more than 10 times. After underwriters exercised the greenshoe, the company raised an additional approximately 10% in funds, pushing total proceeds from an initial estimate of about $78 billion to $85.7 billion. This figure surpasses records held by tech giants like Alibaba and Meta, reflecting strong market confidence in SpaceX's Starlink satellite internet business and reusable rocket technology.

Starlink Business Becomes Core Valuation Driver

Analysts point out that SpaceX's valuation growth is primarily driven by the commercialization of its Starlink business. As of early 2025, Starlink provides services in over 70 countries and regions globally, with users exceeding 4 million. According to industry research estimates, Starlink's annualized revenue has surpassed $10 billion and continues to grow rapidly. Additionally, SpaceX's Falcon 9 rocket launch frequency keeps setting records, completing over 100 orbital launches in 2024 and capturing about 60% of the global commercial launch market. This vertical integration model, from launch services to satellite internet, is seen by Wall Street as a growth logic similar to a "space version of Tesla."

IPO Pricing and Market Reaction

SpaceX's IPO price was set at $320 per share, corresponding to a company valuation of approximately $78 billion. On the first trading day, shares rose over 15% after the opening before stabilizing around $350. Despite recent volatility in US tech stocks due to interest rate expectations, SpaceX's listing still attracted significant long-term capital. Several fund managers said in interviews that SpaceX is a "once-in-a-decade" scarce asset, with a technological moat and founder Elon Musk's brand effect that are hard for other companies to replicate.

Industry Impact and Competitive Landscape

SpaceX's successful listing has had a significant demonstration effect on the commercial space industry. According to public information, several unlisted space startups have begun accelerating IPO or SPAC merger plans. Meanwhile, shares of traditional aerospace giants like Boeing and Lockheed Martin experienced slight fluctuations after SpaceX's listing, as the market reassessed their competitiveness in low-earth orbit satellite communications and reusable rockets. However, SpaceX also faces risks such as Starlink spectrum resource disputes and uncertainty in Starship development progress.

Future Outlook: Starship and Mars Plans

In an internal letter after the listing, Musk emphasized that IPO proceeds will primarily fund mass production of Starship and early infrastructure for the Mars colonization plan. Starship is SpaceX's next-generation super-heavy launch vehicle, designed to deliver over 100 tons of payload to orbit. Although two test flights in 2024 were not fully successful, the company says it has collected key data and expects a third orbital test in the second half of 2025. If Starship becomes commercially viable, it could dramatically reduce space transportation costs and potentially spawn emerging markets like space tourism and in-orbit manufacturing.

Overall, SpaceX's $85.7 billion IPO is not just a capital market celebration but an important milestone as human commercial space exploration moves from experimentation to scale. With continued Starlink user growth and Starship progress, SpaceX's valuation could break $100 billion in the medium term. However, investors should also watch for technological iteration risks and potential geopolitical impacts on satellite communications.