‘Fairy tale or mega bubble?’ Uday Kotak says SpaceX IPO valuation does not fit any traditional matrix
Uday Kotak, Founder and Non-Executive Director of Kotak Mahindra Bank, called SpaceX’s blockbuster IPO a “true test of capitalism” and argued that the company’s staggering valuation cannot be explained by traditional financial metrics alone.
He also said that investors are actually making a big bet on the long-term future of humanity, technological progress and the possibilities of space exploration.
Commenting on the listing of the company led by Elon Musk, Kotak said in his post on X: “SpaceX’s IPO, listing and beyond are a real test for capitalism.”
He stated that the market value of the company cannot be evaluated through traditional frameworks, stating that “the valuation does not fit into any traditional matrix and is a big bet on the future course of planet earth.”
The success or failure of such a valuation will ultimately depend on how the future unfolds, Kotak said.
“Only time will tell whether we, the human race, have arrived at the fairytale world we grew up in as children or whether we are in a mega bubble,” he said.
Praising both entrepreneur Elon Musk and the ecosystem that enabled the company’s growth, Kotak added: “In both cases, kudos to the man who came as an immigrant and the country that allows such unlimited creativity to flourish despite all the risks it entails.”
His comments came a day after SpaceX made a spectacular debut on the public markets, attracting heavy investor attention and becoming one of the world’s most valuable listed companies.
SpaceX shares soared on debut, opening at $150 against the IPO price of $135 and later rising to $164. This rise made the company the sixth largest listed company in the United States in terms of market capitalization.
The IPO saw strong demand from both retail and institutional investors as Musk advances plans to expand AI infrastructure into space via orbital data centers.
SpaceX raised US$75 billion through the sale of approximately 556 million shares valued at US$135 each, valuing the company at US$1.77 trillion. With the listing, SpaceX joined the elite club of trillion-dollar companies and became the first US company to list on the stock market with a valuation exceeding $1 trillion. (MOMENT)
