SpaceX, the rocket and satellite company founded by Elon Musk, will hold its initial public offering (IPO) on Friday, June 12.
The stock will be listed on the Nasdaq Exchange under the ticker symbol SPCX
SpaceX has officially priced its IPO at $135 per share. With about 13.1 billion total shares outstanding, that gives the company an initial market capitalization of $1.77 trillion, making it the largest IPO on record. Investment banks underwriting the IPO are reporting immense demand, but history says SpaceX is likely to underperform the S&P 500 (SNPINDEX: ^GSPC) in the long run, which means investors would be better off buying an S&P 500 index fund instead of participating in the IPO.
Here are the important details. SpaceX stock may rocket higher initially, but history says it will underperform the S&P 500 in the long run IPO stocks frequently jump on their first trading day. Between 2016 and 2025, over 1,100 companies listed shares on U.S. exchanges, and their stock prices increased by an average of 25% on day one, according to Jay Ritter, director of the IPO Initiative at the University of Florida.