Elon Musk’s space company SpaceX pulled off the largest initial public offering in history on Friday. Shares were indicated at more than $174 on the US technology exchange Nasdaq, as reported by Zeit. That represents a premium of nearly 30 percent over the issue price of $135. Through the sale of shares, the company is raising $75 billion and is immediately valued at $1.77 trillion.
The official first trading price is not expected until mid-session on the US trading day, as the exchange first collects buy and sell orders. Demand is enormous: according to reports, it exceeds $250 billion, far outstripping the targeted volume.
However, the Investor Protection Association (IVA) warns of risks. IVA board member Florian Beckermann told APA that “media hype, celebrity status, and the fascination with space travel” could lead to overvaluation. He speaks of a potential “crash landing” in portfolios. Additionally, purchases for local investors are only possible through foreign brokers, which means higher fees. The IVA advises checking fundamentals and only investing if a loss would be affordable.
Source: www.zeit.de
