Reuters reported on the 15th (local time) that the joint underwriters of U.S. aerospace corporations SpaceX's initial public offering (IPO) exercised the overallotment option (greenshoe), increasing the amount of new funding raised through the listing to a total of $85.7 billion (about 130 trillion won).
Earlier, SpaceX set the offering price at $135 per share on the 11th and said it would raise about $75 billion (about 113 trillion won) by selling 555.56 million shares of Class A common stock.
However, after the underwriters exercised the greenshoe option, the number of shares issued increased to 638.89 million. As a result, the final amount raised also expanded to $85.7 billion.
The greenshoe option is a system that allows an underwriter to allocate and sell an additional amount of shares if demand during the IPO process exceeds expectations. It helps ease price volatility in the early days of trading. Simply put, it is a "buffer" that increases supply or buys back some shares depending on market demand to reduce sharp price swings.
Meanwhile, SpaceX shares rose 19.3% from the offering price on the first day of Nasdaq listing on the 12th, ending the session higher.