SpaceX (NASDAQ: SPCX) confirmed its initial public offering raised a total of $85.7 billion after underwriters fully exercised the greenshoe overallotment option on the record-breaking listing.

Key Highlights

  • The SpaceX IPO raised a total of $85.7 billion following the greenshoe exercise.
  • Underwriters had the option to purchase an additional 83.3 million shares.
  • The offering price was set at $135 per share.
  • The greenshoe expansion increased the total share count sold beyond the initial base offering.

SpaceX's initial public offering reached a final total of $85.7 billion after the underwriting syndicate exercised its greenshoe overallotment option in full. Space Exploration Technologies Corp (NASDAQ: SPCX) had priced the base offering at $135 per share, and the additional shares sold under the greenshoe option lifted total proceeds above the originally announced figure.

The greenshoe mechanism, a standard feature of large initial public offerings, gives underwriters the right to sell additional shares to the public if demand exceeds the original allocation. In SpaceX's case, the underwriting group, which included two major investment banks, had the option to purchase up to 83.3 million additional shares beyond the base offering size.

The exercise of the greenshoe option confirms that demand for SpaceX stock exceeded the base deal size at the $135 offering price. The mechanism is typically used by underwriters to stabilize the share price in early trading by covering short positions created during the offering process, while also allowing issuers to raise additional capital when investor appetite is strong.

The expanded SpaceX IPO size further cements the offering as the largest in history by total proceeds raised. The base deal had already surpassed prior records, and the additional capital raised through the greenshoe option adds to the total funds available to the company following its Nasdaq debut.

SPCX stock began trading on the Nasdaq earlier in the week, with shares moving well above the $135 offering price in initial sessions. The greenshoe exercise does not directly affect the trading price of SPCX shares, but reflects the underwriters' assessment of sustained demand for the stock following its public listing.

The additional shares sold under the greenshoe option were drawn from the overallotment pool made available by selling shareholders as part of the offering structure. This is a common arrangement in large-cap IPOs and does not represent new equity issuance beyond what was disclosed in the offering documents.

Investors tracking SpaceX stock will continue to watch trading volumes and price stability in the sessions following the greenshoe exercise, as underwriters typically wind down any stabilization activities once the overallotment option has been fully exercised or has expired.