SpaceX To Target $75B in IPO at $135 Per Share
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What is the main topic discussed in this episode?
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Why is SpaceX setting a fixed $135 share price for its $75 billion IPO?
Bloomberg Tech is live from coast to coast with Caroline Hyde in New York and Ed Ludlow in San Francisco.
This is Bloomberg Tech. Coming up, Elon Musk rejects another Wall Street convention and sets a fixed price for his SpaceX IPO ahead of the marketing phase of the deal. The plan? Offer shares at $135 apiece.
Plus, Palo Alto Networks falls after the company reported its results, failing to meet really elevated buy-side expectations this following a more than 60% run to date.
and candidates backed by tech billionaires and founders fell short in California's primary elections yesterday. We break down the results and what it means for Silicon Valley.
Let's check in on what current geopolitics means for this market. We take a breather. We have been at record high after record high. The S&P have been on a nine-day tear. The Nasdaq have been up for four straight trading days. Today, we pause. We're off by just a tenth of a percent. Of course, front and center is maybe conflict erupting once more, a little bit. That sees far under pressure between the U.S. and Iran. Oil goes higher. Bond yields, they go higher. Stocks just pull back a little bit, Ed. But what are you watching?
Let's get today's big number, 84.75 billion. Alphabet is upsizing its equity raise to that level up from the previously announced raise of $80 billion. All this to fund its AI infrastructure expansion. Interesting, like this is a multi-day story. The stock's basically flat, but there's an element of dilution. The main point being parts of the equity offering really oversubscribed. So Alphabet's saying, okay, we'll do a little bit more. Google's latest fundraising.
How does the fixed‑price IPO differ from the traditional Wall Street roadshow process?
There is a race happening here, guys. Highlights this scramble for capital in the AI era. Now, SpaceX is taking things a step further. Elon Musk's company is planning a $75 billion IPO and has already set a fixed share price ahead of the traditional roadshow process. Another sign Musk is willing to rewrite Wall Street's playbook. That's all according to sources. Bloomberg's Catherine Dougherty is here with more. It's been... Well, a bit of a whirlwind few days. So we report it's $135 a share, 556.5 million shares. Do the math, they'll raise $75 billion. That's not how this typically works
in an
IPO process. Why?
No, typically a company that's looking to list in the US markets is going to look at a range. They're not going with a firm number like this 135 that you're referencing. And that's because in the next week or so, there's a lot of things that could change. This is supposed to be a marketing process. But locking in a price of $135 a share is giving some sort of certainty. It's giving a signal to the market of what to expect. We're expecting that next week by around the 11th is when we could see these SpaceX shares come to market. But even leading up to it, it's just another indication of the difference in the approach that SpaceX and Musk's team are taking at this time. I mean, there is some precedent for doing it this way, Catherine, just not of this size, right?
Absolutely. So smaller companies can take this route that SpaceX is looking like it will, but it is not typical for a company, especially given that this is supposed to be the largest listing on record. So it's taking just some unconventional routes, but you are absolutely right. It's not the first time or likely the last, especially for companies of smaller sizes. I mean, Ed, you've been at the forefront of reporting each tick by tick when it comes to what's happening with Elon Musk and SpaceX more broadly.
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Chapters
8 chapters
1
What is the main topic discussed in this episode?
0:00–0:42
2
Why is SpaceX setting a fixed $135 share price for its $75 billion IPO?
0:42–2:17
3
How does the fixed‑price IPO differ from the traditional Wall Street roadshow process?
2:17–4:43
4
What caused Palo Alto Networks’ stock to tumble despite strong earnings?
4:43–7:16
5
Why are investors skeptical about Palo Alto’s CEO compensation package?
7:16–10:39
6
How are AI‑driven capital raises reshaping the equity market (Alphabet’s $84.75 billion raise)?
10:39–12:51
7
What are the macro‑economic risks (inflation, oil, geopolitics) affecting tech credit markets?
12:51–17:49
8
How is GitHub leveraging AI agents to boost productivity and reliability?
17:49–51:55
Speakers
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