Elon Musk-owned SpaceX is just a day away from its initial public offering (IPO) as Wall Street backs the largest company valuation in history.
The space technology giant has received orders worth $70 billion from retail investors; However, SpaceX only wants to allocate 20% of the shares to the retail investors. This indicates that most of the orders remain unfulfilled.
The rocket maker aimed to raise $75 billion at a $1.75 trillion valuation by selling about 555.6 million shares. The price was revealed to be set at a firm $135 per share.
SpaceX plans to sell approximately 4.2% of its equity through the IPO, while Elon Musk and other insiders will keep the remaining 95.8%.
It has reportedly decided to allocate 10 percent of the shares to international orders. The company raised Japan’s allocation from $2 billion to $2.5 billion.
After SpaceX’s road show, which began last Thursday, trading is expected to begin on Friday.
SpaceX aims to “build the infrastructure of the future,” according to its newly launched website.
The aerospace giant wrote: “We are building the systems and technologies necessary to provide global connectivity on Earth and beyond, to understand the true nature of the universe, and to extend the light of consciousness to the stars.”
How much can investors earn?
While it’s impossible to predict exactly how much investors can make from SpaceX stock, strong demand following the IPO suggests many expect the stock price to rise after trading begins.
If the stock price rises from its IPO price of $135 to $150, investors will gain about 11%. A rise to $200 would generate a return of around 48%, while a jump to $270 would double an investor’s money.
