Elon Musk became the worldʼs first dollar trillionaire

American entrepreneur Elon Musk became the worldʼs first dollar trillionaire.

This is evidenced by calculations by Reuters and Forbes.

Until recently, the entrepreneurʼs fortune was estimated at approximately $780 billion. However, his company SpaceX recently went public — that is, it placed its shares on the stock exchange for the first time.

As a result of the IPO, the company sold 555.56 million shares to investors at $135 each and raised a record $75 billion. Thanks to this, SpaceXʼs market capitalization reached $1.77 trillion, which is a record for an initial public offering.

Demand for the shares has significantly outstripped supply. The order book has been more than three times oversubscribed, according to FT sources. Investors include large asset managers, Gulf sovereign wealth funds, hedge funds and retail investors.

Applications from private investors exceeded $100 billion. As a result, they will receive from 20 to 25 percent of the shares sold during the IPO. At the same time, some large institutional investors have had their allocations reduced due to excessive demand.

Among the largest buyers are sovereign wealth funds from Saudi Arabia, Qatar, and Kuwait, which will receive shares worth more than $1 billion. The worldʼs largest asset management company “BlackRock” has submitted an application for more than $5 billion.

The sale broke the previous record for the largest initial public offering in history, set by Saudi state oil giant Saudi Aramco, which raised $25.6 billion on the Riyadh stock exchange in December 2019, giving it a market value of $1.71 trillion. Adjusted for inflation, Aramco raised $33.2 billion, giving it a market value of $2.21 trillion.

SpaceXʼs valuation of $1.77 trillion, based on 13.08 billion shares outstanding, could rise even further if underwriters exercise their option to sell additional shares, which is typically done within 30 days of the offering. Reuters previously reported that SpaceX was seeking a valuation of $1.75 trillion.

Thanks to the IPO, Muskʼs SpaceX securities are now worth an estimated $866 billion. Together with the rest of his assets, Muskʼs fortune has reached $1.1 trillion.

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