The shares of most awaited Initial Public Offering (IPO), SpaceX, has slipped for the third consecutive day shedding hundreds of billions of dollars in market
value. SpaceX stock fell 16% to close at $154.60, the lowest level since the company’s first day of trading. The fall has pushed company's three-day loss to 23% and erased over $600 billion in value over that period SpaceX shares fell nearly 6 percent from the post-debut high, showing that the euphoric rally that the stock witnessed has currently paused. During the debut week, investors rushed to get exposure of Elon Musk's aerospace and satellite communications giant The Elon Musk-led company said it is selling investment-grade bonds for the first time, part of what’s expected to be a massive borrowing spree to fund its artificial-intelligence ambitions leading to the fall in shares for the third consecutive day. Still after the losses, SpaceX is the sixth-largest company in the world with shares about 15% higher than their $135 IPO price. SpaceX, the satellite and AI conglomerate is seeking to raise at least $20 billion from the first bond offering. Retail traders still remained the net buyers of SpaceX, but inflows were below last week’s levels. SpaceX disclosed that it held more than $100 billion in cash and cash equivalents, highlighting the company's growing financial strength even as it ramps up spending on ambitious expansion plans. The company further said the proceeds from the bond offering would be used for general corporate purposes, repayment of borrowings under an existing bridge loan facility and related expenses.
Blockbuster debut:
SpaceX has registered a blockbuster debut at Nasdaq with its valuation surging past 2 trillion dollars. Further, its shares soared in the first two days of trading before giving up some gains.
Investors traded around 1.8 million SpaceX options contracts on the first day they became available. This surpassed the previous record of around 364,000 contracts set by Meta Platforms following its 2012 market debut.
