SpaceX, the rocket company founded by Elon Musk, has made an impressive entry into the market, with its shares soaring immediately after its initial public offering. The company specialises in designing, manufacturing, and launching rockets and spacecraft, and operates its Starlink satellite internet service. The stock climbed 19.2 per cent on its debut, followed by a further 20 per cent surge on Monday, propelling SpaceX’s valuation to more than US$2.5 trillion (A$3.5 trillion).
Australian investors were prominent participants, with hedge fund manager Jack Hu of Phoenix Growth Fund taking profits. Hu, who previously held a locked-up stake, secured additional shares through brokers like Bell Potter and CommSec, swiftly trimming his holdings after the significant price gains. With SpaceX now representing about 5 per cent of his fund, Hu plans to gradually sell more over the coming fortnight. Australia’s richest person, Gina Rinehart, also built a more than US$1 billion stake through Hancock Prospecting, which has not adjusted its holdings since its initial allocation.
Other local firms, including Munro Partners, Plato Investment Management, and Boman Group, also participated in the float. Sydney-based Pengana Capital, an early investor, now holds SpaceX as its largest position, valuing it at US$800 billion and anticipating further increases. However, market analysts are sharply divided on SpaceX’s true long-term valuation. While high-profile stockbroker Angus Aitken predicts the stock could soar to US$500 and potentially surpass Nvidia within five years, Morningstar offers a more conservative fair value estimate of just US$63 a share. VanEck’s Asia-Pacific head, Arian Neiron, cautioned that trading at roughly 60 times projected revenue is “aggressive by any conventional measure,” highlighting a “bear case” amidst market hype.
