SpaceX retreats after its IPO pop as traders watch valuation and index flows

SpaceX stock blasted higher in Friday’s debut, with the SPCX ticker drawing heavy attention on Wall Street. The stock was last at $167.83 after opening at $150. That’s above the IPO price of $135. An IPO is when a company sells shares to the public for the first time. With 13.08 billion shares outstanding, according to Reuters, the price gives SpaceX a market cap near $2.2 trillion.

SpaceX’s initial public offering — an IPO, or the first sale of a company’s shares to public investors — is set to become today’s dominant market event. The company confirmed it priced 555,555,555 Class A shares at $135 each, with trading expected on the Nasdaq Global Select Market and Nasdaq Texas under SPCX, and Reuters reported that the sale raised $75 billion and valued SpaceX at $1.77 trillion. For stock buyers, the key point is that $135 is the offering price, not necessarily the price retail investors will pay once Nasdaq’s opening auction sets the first tradable price.

SpaceX is in the last stretch of pricing its planned Nasdaq IPO, with investor demand way above the shares available and the $135-a-share level in focus ahead of Friday’s open. Bookrunners have seen more than $250 billion in orders for a $75 billion deal, leaving it about three-and-a-half to four times oversubscribed. Allocations haven’t been finalized yet, and interest could shift before books close.