SpaceX has completed its initial public offering after raising a total of $85.7 billion. The final amount increased after underwriters exercised their overallotment option.
The Elon Musk-led space and artificial intelligence company initially secured $75 billion when its shares began trading on Thursday.
Overallotment Adds Another $10.7 Billion
SpaceX raised an additional $10.7 billion through the overallotment option, commonly known as a greenshoe option.
Underwriters activated the option following the company’s stock market debut. The additional share sale lifted the total proceeds from the SpaceX IPO to $85.7 billion.
SpaceX Records One of the Largest Technology Greenshoes
The $10.7 billion overallotment ranks among the largest greenshoe options ever recorded for a technology IPO.
An overallotment option allows underwriters to sell additional shares when investor demand exceeds expectations. It can also help stabilize the stock price during the first days of public trading.
Strong Debut Encourages Underwriters to Act
Underwriters typically exercise a greenshoe option when a company’s shares trade strongly following their market debut.
The decision suggests that demand for SpaceX shares remained high after the initial offering. It also allowed the company to raise significantly more capital than originally planned.
