SpaceX Makes History With Biggest-Ever IPO

**SPEAKER_2** (0:02)
Bloomberg Audio Studios, Podcasts, Radio, News. Bloomberg Tech is live from coast to coast with Caroline Hyde in New York and Ed Ludlow in San Francisco.

**Ed Ludlow** (0:21)
This is Bloomberg Tech. I'm Ed Ludlow.

**Caroline Hyde** (0:23)
And I'm Caroline Hyde. And today is the day SpaceX's big debut in the public markets. The company is set to begin trading any moment now.

**Ed Ludlow** (0:32)
We'll break down what that means for investors and for the space economy and for the IPO pipeline. Elon Musk speaking at Starbase Texas just a couple of hours ago.

**Elon Musk** (0:43)
I gave SpaceX less than a 10% chance of succeeding at all, to be clear. In fact, I told people this. I said, look, we're probably going to fail, but you know, we should give it a try, because if we don't, if there's not a new company that enters space, we will never be a truly space bearing civilization.

**Caroline Hyde** (1:06)
And we check in on these markets as the latest indicated price of SpaceX shares is $162 each. The IPO price $134. We look at the Nasdaq 100, Ed.

**Ed Ludlow** (1:16)
What a rocket ride that's been.

**Caroline Hyde** (1:18)
Yeah, and look, this is about geopolitics. This is about hope on some sort of deal MOU with Iran and the United States, but thus far, we are completely focused on the impact of this IPO.

**Ed Ludlow** (1:27)
Yeah, look, there is a lot of evidence that whatever asset class you look at, people are trying to be positioned to play this IPO in the moment when we start trading, imminently starting trading. Indicated right now to open $162 each, we price the IPO $135. But loads of disappointed people on the institutional side and the retail side.

**Caroline Hyde** (1:46)
Yeah, who didn't get allocations. But if you've got an allocation, you're looking at maybe a 20% pop if it opens at that level. So, Kyra and Ann is down at the Nasdaq for us.
What are you hearing? What are you seeing?

**Yohara Anand** (1:57)
Well, the fanfare from the opening bell is over, but we still have legions of Elon Musk fans outside and some movement behind me on the Nasdaq floor. But as you guys were saying, we've gotten a series of indications throughout the morning and they've continued to edge lower as traders work through the price discovery process. The latest indication is $162 a share, down from earlier levels that were around $175.
Even so, that is above the $135 IPO price and does imply a valuation of some $2.1 trillion, meaning SpaceX would still rank among the most valuable companies in the world from its very first trade.

**Ed Ludlow** (2:40)
$162 a share, 20% from the IPO price, exactly implying a market value roughly $2.1 trillion. Bloomberg's Yohara Anand, back throughout the hour at the Nasdaq. Let's talk about SpaceX. Christian Garrett, 137 Ventures Managing Partner. SpaceX was one of the first investments that 137 Ventures made. Net-net in the end, a stake worth billions and billions of dollars, and you've been with the company as its story changed. Started with reusability and rockets.
It's a future of AI and the enterprise. I just ask you, Christian, to reflect on what this IPO represents to you and the firm.

**Christian Garrett** (3:16)
Well, first off, we're extremely excited for the IPO. It's a great milestone, but as long-term investors, this is just the beginning of the journey for the company.

**Ed Ludlow** (3:26)
You could say that.

**Christian Garrett** (3:27)
Of course. I think the company, like you mentioned, has gone through this evolution, and many things have grown in the vision or scope, but many things have stayed the exact same. The company has always had the mission to make humanity multi-planetary, to expand consciousness across the universe, and they knew that they had to find incredible business models where they had advantages in order to fund that vision. They started by really bringing launch back to America, which in and of itself is an incredible thing to be a part of.
They were the first company to build a reusable rocket, a partially reusable rocket, which dramatically dropped costs for launch. That advantage gave them the infrastructure to build Starlink, which is the world's largest constellation. And from there, you're seeing that they have the advantage to build infrastructure terrestrially and hopefully in orbit for data centers.

**Caroline Hyde** (4:16)
Elon Musk, we started the show saying just a 10% chance of survival. Was that what you thought when you first were getting under the skin of this company at 137?
Did you have bigger bets than that in terms of thinking it'd be more than 10% probability? And where do you see your holdings going longer term?