SpaceX IPO Pops 67% to $225 Then Drops 9% to $174, Unveils $60B Acquisition and $20B Bond Plan
SPCX•SpaceX’s $135 IPO surged to $225 before settling at $174 and included a $60 billion acquisition of Cursor plus plans for a $20 billion bond sale, with only 5% of shares free-floating ahead of December lockup expirations. Similar IPOs average -5.3% market-adjusted returns over three years, suggesting SpaceX may trail S&P 500 returns.
1. IPO Performance and Price Movements
SpaceX completed its $135 IPO, marking the largest offering in history, then saw shares surge 67% to $225 before retracing 9% to $174, highlighting significant early volatility for the newly public stock.
2. Strategic Acquisition and Financing Plans
The company announced a $60 billion acquisition of AI coding tool maker Cursor financed with stock and disclosed intentions to raise $20 billion through a bond sale, underscoring aggressive growth and capital-raising initiatives.
3. Free Float Constraints and Lockup Expirations
Only roughly 5% of SpaceX shares are currently free-floating due to existing lockup agreements, with major unlock events scheduled for December 2026 likely to pressure supply around the company’s Q2 earnings release.
4. Historical IPO Returns and Market Outlook
Past IPOs with similar small-float and high-revenue profiles have averaged -5.3% market-adjusted returns over three years, raising the possibility that SpaceX could underperform the broader S&P 500 over the medium term.
