SpaceX Prices Its Record IPO at $135 a Share

SpaceX has priced its initial public offering at $135 a share, setting up one of the largest market debuts in history. The deal values Elon Musk's rocket and AI company at roughly $1.77 trillion, with trading expected to start Friday (June 12).

The company announced it will make 555,555,555 shares available at the fixed $135 price. The offering signals how much investor appetite has built around a name that has never traded publicly before.

Demand for the deal has been described as extraordinary. According to CNBC, the offering was reportedly four times oversubscribed heading into the debut.

That level of interest is usually read as a positive sign for a new listing. CNBC's Jim Cramer warned, however, that excessive demand can create problems of its own.

Cramer said he worries the stock could climb too high, too quickly, once trading opens. He pointed to inexperienced investors placing market orders rather than limit orders as a key risk.

In his view, the best IPOs open modestly above the offering price and then trade in an orderly way. He cautioned that a sudden spike driven by retail enthusiasm rarely ends well.

Cramer noted that a mix of institutional demand, retail buying, and future index inclusion could push shares sharply higher. He suggested the stock could briefly rival the world's largest public companies before settling.

The listing has also drawn political scrutiny ahead of its debut. Sen. Elizabeth Warren raised concerns this week about whether the offering had received proper oversight.

According to CNBC, Warren sent a letter to the heads of Nasdaq, S&P Dow Jones Indices, FTSE Russell, and Morningstar Indexes. She asked whether they changed index rules in response to lobbying from SpaceX and other large private companies.

Warren also flagged proposed changes that could fast-track newly listed stocks into top indexes. She argued such moves could destabilize markets and create risks for retirees who rely on index funds.

Earlier in the week, Warren called on the SEC to delay the offering. She said the agency had not done enough to protect investors and market integrity.

SpaceX itself acknowledged Musk-related risk in its filing with the Securities and Exchange Commission. The filing said Musk's public statements could have a positive or negative impact on the business, relationships, or stock price.

According to Mashable, retail traders reportedly ordered $100 billion in SpaceX stock ahead of the offering. The IPO is widely expected to make Musk the world's first trillionaire.