Wall Street Gears Up for Historic SpaceX IPO, Retail Investor Subscriptions Top $100 Billion

BlockBeats News, June 12th, Elon Musk's SpaceX officially launched a $75 billion IPO, issuing 5.556 billion shares at $135 per share, making SpaceX surpass Tesla as the seventh largest company in the U.S. The company is set to land on NASDAQ this Friday, marking the largest IPO in U.S. history.

The market has shown great enthusiasm for SpaceX's debut. It is reported that retail investors in the U.S. have subscribed for over $100 billion, exceeding the funding target, while institutional demand is four times oversubscribed. BlackRock has submitted orders of at least $5 billion, and SpaceX plans to allocate at least 20% of the shares to retail investors.

Market predictions from Polymarket indicate that traders expect a closing market cap of over $1.8 trillion on SpaceX's first day of trading with an 84% probability, and a 69% probability of surpassing $2 trillion. Hyperliquid's IPO pre-launch perpetual contract implies a potential stock price increase of over 20% on the first day.

To prepare for a possible historic level of trading volume, institutions such as NASDAQ, Citadel Securities, Jane Street, and S&P Global have conducted stress tests and simulations several weeks in advance. S&P Global stated that its system's processing capacity has been increased by approximately 200% and described it as "unprecedented in terms of scale of trading."

Market high alertness is partly due to the severe technical glitches that occurred during Facebook's IPO in 2012. NASDAQ has currently upgraded its core systems and deployed backup trading platforms to prevent a similar incident from reoccurring.

Despite SpaceX's first-quarter revenue increasing by 15% year-over-year to $46.9 billion, the quarter saw a net loss of $4.28 billion, with a cumulative loss of around $41.3 billion since its establishment in 2002. The company warned in its prospectus that it may not achieve profitability in the future.

Wall Street institutions remain optimistic about SpaceX's prospects. Oppenheimer has given it an "Outperform" rating with a target price of $190, while New Street Research has set a target price of $165, believing its xAI business is valued at around $575 billion.

Argent Capital Management portfolio manager Jed Ellerbroek stated, "Every investment management firm in America is talking about SpaceX, and we all know that Friday's trading will be wild."