SpaceX IPO Makes History, UK PM On The Defensive, More

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Bloomberg News Now 10 min 9 speakers 5 chapters transcribed 3 months ago
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What is the main topic discussed in this episode?

Jennifer Zabasaja 0:00
A new chapter in global growth is being written and much of it is happening in Africa. Africans need to invest. There are deals to be done and business to be won. I'm Jennifer Zabasaja. Every week on the Next Africa podcast, we track capital flows and political shifts shaping the continent's future.
Tom McKenzie 0:17
The digitalization of Africa is going to power its growth.
Jennifer Zabasaja 0:20
Creating the world of something like HIV is possible.
Tom McKenzie 0:22
Population growth is so enormous in Africa.
Jennifer Zabasaja 0:25
Listen to Next Africa on Apple, Spotify or wherever you get your podcasts.
Caroline Hepker 0:31
News when you want it with Bloomberg News Now. I'm Caroline Hepker. SpaceX has made history with the biggest stock market listing of all time. The Elon Musk-led company raised $75 billion with shares valued at $135 each. At that price, SpaceX is worth about $1.77 trillion. trillion, making it one of the world's most valuable public companies. Including employee stock awards and options, the valuation rises to roughly $1.8 trillion. Dan Ives is Global Head of Technology Research at Wedbush Securities.
Dan Ives 1:08
I think a big reason for some of the stuff we've seen in tech over the last week is an anticipation of this in terms of little, you know, white knuckle moment. But it comes down to like anyone that's owning SpaceX, you're buying it for the Musk factor. And many that bet against Tesla and Musk going back a decade ago, that was proven historically wrong.
Caroline Hepker 1:30
So that was Dan Ives there, AI big tech bull that he is. As Elon Musk's fan base played a crucial component in this deal, sources tell us that retail investors alone have placed more than $100 billion worth of orders, far exceeding the 20% of shares reserved for them. Well, SpaceX will begin trading on NASDAQ later today under the ticket SPCX. However, the company will not be eligible for inclusion in the S&P 500 for at least a year. It would also need to meet the index's requirements for profitability and 10% public share ownership. Currently, less than 5% of SpaceX's shares are available for public trading, and the company posted a loss of nearly $4.2 billion in the first quarter. Peter Singlehurst heads the private company's team at Bailey Gifford.
Peter Singlehurst 2:26
Mathematically, it's very hard to see how you could see SpaceX delivering the same kind of returns as a public company as Tesla did. But I think what this speaks to is a requirement for investors to have exposure to growth in both the private and the public markets.
Caroline Hepker 2:45
Peter Singlehurst speaking there with a small number of firms set to net tens of billion dollars in returns from the listing in one of the most significant windfalls in venture capital history. SpaceX is the first of three major IPOs expected to capitalise on investors' appetite for artificial intelligence. Anthropic and OpenAI are also expected to go public this year and they could each seek valuations of more than a trillion dollars. As well as raising tens of billions of dollars for the company, the listing of SpaceX makes Elon Musk a near trillionaire. It's a status that he could hit once the stock starts trading later today, as Bloomberg's Tom McKenzie reports now.

What significant milestone did SpaceX achieve with its IPO?

Tom McKenzie 3:29
According to calculations by the Bloomberg Billionaires Index, Musk's net worth will jump to about $970 billion after taking into account SpaceX's offering price. Already the world's richest person at $135 a share, his stake, including options, is worth $688 billion. And a successful showing in public markets Friday could tip the scales into making him a trillionaire. His wealth will boom even further if he meets performance-based conditions. However, hitting those targets would require out-of-this-world performance.

How much capital did SpaceX raise during its stock market debut?

Tom McKenzie 4:05
The company's market cap would need to reach $7.5 trillion. SpaceX would also have to deliver a significant number of space-based data centres... And last but no means least, establish a permanent human colony on Mars with at least one million inhabitants. In London, Tom McKenzie. Still very much on planet Earth for Bloomberg Radio.
Caroline Hepker 4:29
Wow, isn't that an extraordinary story around SpaceX? And actually, if you look at the early indications, SpaceX shares indicated higher by more than 35% when that debut begins on the NASDAQ today.

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