SpaceX IPO a 'true test for capitalism', says Uday Kotak as stock surges on debut

New Delhi [India], June 13 (ANI): Founder and Non-Executive Director of Kotak Mahindra Bank, Uday Kotak, on Saturday described the blockbuster initial public offering (IPO) of SpaceX as a “true test for capitalism,” saying the company’s valuation defies conventional metrics and reflects a massive bet on humanity’s future.

Commenting on the listing of the Elon Musk-led company, Kotak said in a post on X, “SpaceX IPO, listing, and beyond, is a true test for capitalism.”

He noted that the company’s market value cannot be assessed through traditional frameworks, stating that “the valuation does not fit any traditional matrix and is a huge bet on the future course of planet earth.”

Kotak said the success or failure of such a valuation would ultimately depend on how the future unfolds.

“Only time will tell whether we, the human race, have arrived into the fairy tale world we grew up in as children, or are in a mega bubble,” he said.

Praising both entrepreneur Elon Musk and the ecosystem that enabled the company to grow, Kotak added, “Either ways, kudos to the man who came as an immigrant, and to the country that has allowed such boundless creativity to flourish despite all the risks it embeds.”

His comments came a day after SpaceX made a stellar debut on public markets, drawing intense investor interest and becoming one of the most valuable listed companies in the world.

Shares of SpaceX surged on their market debut, opening at USD 150 against an IPO price of USD 135 and later climbing to USD 164. The rally propelled the company to become the sixth-largest US-listed firm by market capitalisation.

The IPO attracted strong demand from both retail and institutional investors as Musk pushes ahead with plans to expand artificial intelligence infrastructure into space through orbital data centres.

SpaceX raised USD 75 billion through the sale of nearly 556 million shares priced at USD 135 each, valuing the company at USD 1.77 trillion. With the listing, SpaceX joined the elite club of trillion-dollar companies and became the first US company to debut on the stock market with a valuation exceeding USD 1 trillion. (ANI)

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