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TheSpace Exploration Technologies Corp (NASDAQ:SPCX)initial public offering (IPO) is off to a fantastic start.
Investors lucky enough to get shares at the $135 IPO price are already up over 50%.
Those who bought in on the first day of trading last Friday are up somewhere between 20% and 40%.
This week, I’m looking at several of thelargest, most hyped IPOs.
I’ll discuss some similarities and differences to SPCX, then show a chart for their first year of trading.
While SPCX is a one-of-a-kind IPO (as they all are), these historical examples might give us an idea about what to expect from the stock over the next several months.
Alibaba Group Holding (NYSE:BABA)stock, which went public in September of 2014, may be the most apt comparison to SPCX.
Both were highly anticipated IPOs with famous founders (Elon Musk with SPCX and Jack MA with BABA) and set a record for how much was raised in the IPO.
The differences though are that SPCX has a market cap 10 times bigger than BABA's IPO.
What's more, BABA was very profitable when they went public while SPCX on the other hand is unprofitable due to large investments and growth spending.
The chart below shows how BABA performed in its first-year trading.
I show the return from its IPO price and from where it opened on day one of trading (9/14/2014).
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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