Less than two weeks after making history with the largest IPO fundraising, Elon Musk's SpaceX has returned to the capital markets by issuing $25 billion in bonds, approximately 810 billion baht. This marks the company's first fundraise through the debt securities market.
The bond offering drew overwhelming interest, with investor orders totaling nearly $90 billion, surpassing the original $20 billion target, prompting the company to increase the issuance to $25 billion.
Reports state that although SpaceX recently raised over $100 billion in cash from going public, the company still requires massive funding to support long-term plans including Starship rocket development, expanding the Starlink satellite internet business, and advancing its AI ventures, now a key strategic focus.
The main purpose of this bond issuance is to repay a $20 billion Bridge Loan SpaceX took earlier this year, covering related fees and expenses, with remaining funds allocated for working capital and general corporate purposes.
The Bridge Loan was taken as SpaceX seriously expanded its AI empire, including developing the Grok model, AI Coding Agent system, and acquiring Cursor, an AI coding startup valued at $60 billion.
In other words, this bond issuance is not due to liquidity issues but is a strategy to convert short-term debt with limited maturity into longer-term debt with clearer financial costs, matching the company's large-scale investments which may take years to yield returns.
However, the stock market's response was not positive; after the bond announcement, SpaceX shares (SPCX) plunged 16.4% in one day, the steepest daily drop since listing on 12 June.
Analysts believe the market is concerned about increased interest expenses from new debt and the risk posed by upcoming unlocking of shares held by existing shareholders in the next few months, potentially flooding the market.
Due to heavy selling, SpaceX's stock price now stands only about 14% above its IPO price of $135, after previously surging to around $225 per share. Currently, SPCX trades near $154, losing nearly one-third of its value after once becoming the fourth most valuable public company worldwide, temporarily surpassing Amazon and Microsoft.
. CNBC , Financial Times
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