Saudi Fund’s SpaceX Stake Jumps to $6.83B After IPO Debut, Up $2.36B
Highlights
- Kingdom Holding said its SpaceX stake jumped to $6.83B after the Nasdaq debut.
- The rise marks an unrealized gain of about $2.36B on its 42.4M shares.
- The shares face a lock-up of up to 180 days, with some early-release terms.
Saudi Arabia’s Kingdom Holding Co., a publicly traded, globally diversified investment holding company headquartered in Riyadh, said the value of its stake in SpaceX has climbed to about $6.83 billion after the aerospace company’s debut on Nasdaq, marking an unrealized gain of roughly $2.36 billion.
Kingdom Holding has 42.4M SpaceX Shares
In a filing to the Saudi Exchange, the investment firm controlled by Prince Alwaleed bin Talal said SpaceX completed its initial public offering on June 12 at $135 per share and closed its first trading day at $160.95, according to a report from Arab News. Kingdom Holding owns 42.4 million shares of SpaceX Class A common stock, a 0.34 percent stake.
The holding had been carried at $4.47 billion, or SR16.76 billion, in the firm’s financial statements as of March 31, per the report. Based on the June 12 closing price, it is now worth about $6.83 billion, or SR25.6 billion, well above the SR21.26 billion the company estimated on June 4 had SpaceX reached a $1.75 trillion valuation.
Kingdom Holding said its exposure to the company began with a stake in Twitter in 2011 and became part of SpaceX through a series of transactions involving X and xAI.
The shares are not immediately tradable. Kingdom Holding said its SpaceX stock is subject to a lock-up of up to 180 days from listing, with early-release provisions tied to conditions including SpaceX’s earnings releases and share-price thresholds.
SpaceX’s first-day close implied a market capitalization near $2.1 trillion, up from about $1.77 trillion at the IPO price. The company raised $75 billion through the offering, which Nasdaq called the largest IPO in Wall Street history. Its shares trade under the ticker SPCX.
SpaceX sold 555.6 million primary shares, with a 15% over-allotment option. The company said proceeds would fund its growth plans, including investment in artificial intelligence computing capacity, launch infrastructure and vehicles, and the expansion of its satellite constellations.
Kevin O’Leary Backs SpaceX’s IPO Valuation
As reported, billionaire investor Kevin O’Leary has defended SpaceX’s lofty valuation after its record Nasdaq debut, arguing the premium reflects where the company is headed rather than what it earns now. In a post on X, he said that while Starlink drives much of the current cash flow, the market’s enthusiasm rests on Elon Musk’s record of building new industries.
His comments came after the milestone drew criticism from Senator Bernie Sanders, who tied Musk’s rise to wealth inequality, citing his roughly $290 million spent to help elect Trump and a $700 billion jump in his fortune since the election. Bitcoin advocate Robert Breedlove dismissed that framing as envy, casting Bitcoin as a counter to wealth-redistribution efforts.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
