SpaceX’s historic IPO just got super-sized, after the public offering’s underwriters exercised their option to purchase the maximum amount of shares — bringing the total amount raised to $85.7 billion.
Elon Musk’s space-and-AI company had initially raised $75 billion, which was already enough to make it the largest IPO windfall ever.
SpaceX has said it plans to use the proceeds from this IPO in a variety of ways. The company plans to extinguish around $20 billion in debt related to legacy loans tied to X, the social media company formerly known as Twitter, and Musk’s AI company xAI — both of which were combined into SpaceX before the IPO.
Funds will also be used to expand SpaceX’s AI compute infrastructure, enhance its launch infrastructure, and improve Starlink.
SpaceX’s stock started trading on the Nasdaq exchange on Friday. The company finished the day with a valuation of more than $2 trillion, and Musk became the world’s first trillionaire. Shares climbed higher on Monday, helping SpaceX eclipse the valuation of chipmaker TSMC.