SpaceX: The Biggest Stock Listing Ever Is Worth Nearly Twice All of Brazil

Markets · Technology

SpaceX has just pulled off the largest stock-market debut ever, and the easiest way to grasp the scale is this: the rocket company is now worth nearly twice every business listed in Latin America’s biggest economy combined.

Elon Musk’s rocket and satellite company has gone public, and it has done so with a bang. The listing raised about $75 billion, making it the largest initial public offering the world has ever seen.

That total smashes the previous record, the roughly $26 billion raised by Saudi oil giant Aramco in 2019. The shares were priced at $135 each, giving the company a value of about $1.77 trillion.

Why the SpaceX debut matters to Latin America

The numbers are so large they can be hard to picture. So consider a comparison closer to home for readers of this page.

A single company now carries a price tag close to twice the combined worth of every firm listed on Brazil’s stock exchange. One business in Texas is valued at nearly double the entire public market of Latin America’s largest economy.

That gap says something about where global capital is flowing. Vast sums are pouring into a handful of American technology names, while emerging markets compete for a far smaller slice.

A giant among giants

When trading opens, SpaceX is expected to rank around seventh among all companies listed in the United States. That places it above household names such as JPMorgan Chase and Meta.

It even sits above Musk’s own carmaker, Tesla. For a business that was private until this week, the leap is remarkable.

The money raised will go toward growth. The company has said it will spend on satellite networks, launch facilities and the computing power behind its artificial-intelligence arm.

The reasons for caution

Not everyone is convinced the price is justified. The company is still losing money, posting a net loss of more than four billion dollars in the first quarter alone.

Most of its profit comes from one source, the Starlink satellite-internet service. Folded into the business is xAI, an artificial-intelligence venture that has been burning through cash.

Analysts also note that the shares trade at a steep multiple of the company’s sales. History shows that even hot debuts can lose their shine over the following years.

The debut also drew unusual attention from ordinary savers. The company courted small investors, including in Europe, and retail buyers reportedly placed tens of billions of dollars in orders.

There is a further twist to the demand. Once the stock joins a major index, funds that track that index may be forced to buy in, channelling billions more into a single name.

Through it all, Musk keeps firm command. After the sale he still holds more than 80 percent of the voting power, so investors are buying a stake but not a say.

Why it matters

For investors in the region, the debut is a useful mirror. It shows how heavily the world’s money is concentrated in a few American tech stories, and how far that leaves everyone else.

It is also a sign of more to come. Other large technology firms are reportedly weighing their own listings, which could pull yet more capital toward the same corner of the market.

That concentration carries a risk worth noting. When so much value rests on a few stories about the future, a change of mood can move markets far beyond the companies involved.

For now, though, the enthusiasm is hard to miss. A private rocket venture has become one of the most valuable companies on the planet in a single afternoon of trading.

For readers across the region, the takeaway is simple. The centre of gravity in global markets sits far away, and it is pulling harder than ever.

Frequently Asked Questions

How big was the SpaceX listing?

It raised about 75 billion dollars, the largest initial public offering in history. The shares were priced at 135 dollars, valuing the company at roughly 1.77 trillion dollars.

How does that compare with Brazil?

The valuation is close to twice the combined worth of all companies listed on Brazil’s stock exchange. In other words, one firm is valued at nearly double an entire national market.

Is the company profitable?

No, the company is not profitable. It posted a net loss of more than four billion dollars in the first quarter, with most of its profit coming from the Starlink internet service.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error

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