Quote · Excess Returns
Andy Constan on the SpaceX IPO, AI CapEx, and the End of the Buyback Tailwind
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Why underwriters and regulators want IPOs to work
At 16:00 · chapter starts 8:27
Andy evaluates the SpaceX IPO: $85B float on a $2T cap, priced at $135, opened at $150, traded into the $170s — the biggest IPO in history and a well-executed deal. [1] — Andy Constan "A good IPO isn't about getting the perfect price — it's about satisfying every party in the room. SpaceX priced at $135, opened at $150, an…" 05:45
SpaceX's IPO surpassed Saudi Aramco to become the largest IPO in history, pricing at $135, opening at $150, and trading into the $170s.
SpaceX issued approximately $85 billion of stock, representing roughly 4% of its $2 trillion market cap at IPO.
Conventional wisdom says issuers hate leaving money on the table. Wrong. When you're selling just 4% of a $2 trillion company, a strong aftermarket pop signals quality to every future investor, employee, and M&A counterparty. The cost of underpricing 4% is tiny vs. the reputational return.
