Business
“Rare business”: Australia’s Richest Person Gina Rinehart bets $1.4 billion on SpaceX
Australian billionaire Gina Rinehart has invested more than $1 billion in SpaceX through its historic $75 billion IPO, according to the Wall Street Journal. Hancock Prospecting described the allocation as a significant investment and said it sees potential future opportunities with SpaceX through its critical minerals portfolio. The investment immediately gained value after SpaceX shares surged 19% on their first day of trading.
Key Highlights
- The Australia. billionaire Gina Rinehart has become a significant investor in SpaceX's upcoming IPO.
- SpaceX achieved the biggest IPO of all time with a $75 billion round.
- Rinehart described SpaceX as a rare business while praising entrepreneur Elon Musk.
- SpaceX stock A leapt 19% on its first day of trading on the Nasdaq
Gina Rinehart, Australia’s richest person, invested about $1.4 billion in the SpaceX IPO. Her company, Hancock Prospecting, did not disclose the precise size of the stake. However, Rinehart said it was a significant investment and that Hancock was pleased to receive an allocation in an extremely popular and oversubscribed IPO.
Hancock Prospecting Secures SpaceX Allocation
Rinehart revealed Hancock Prospecting had received an allocation in the highly oversubscribed $75 billion SpaceX IPO. The company did not reveal how much it invested, but the stake is for over $1 billion as per sources.
"This is a significant investment for Hancock, and we're pleased to have received allocation in what has been an extremely popular and oversubscribed IPO ever," Rinehart said. A portion of the IPO makes Hancock one of the top investors in what became the largest-ever public offering.
Rinehart Praises Elon Musk's Achievements
In the announcement, Rinehart hailed Elon Musk's business acumen and cited that he had created two of the world's ten largest companies. Musk, she said, did what few in history have done and resolved that he helped keep American technology at the cutting edge of modernity. Rinehart, called Musk a patriot, lauded his efforts to reduce US federal government jobs through Trump’s Department of Government Efficiency (DOGE).
Critical Minerals Partnership Opportunities
The two companies might be able to explore future opportunities related to Hancock Prospecting's critical minerals portfolio. In the coming years, demand for the metals and infrastructure that provide advanced technologies is likely to explode, chief executive Garry Korte said.
Hancock, which owns stakes in MP Materials, Rare Earths Americas, Lynas Rare Earths and Liontown Resources is also a major investor in critical minerals and rare earths.
SpaceX IPO Delivers Immediate Returns
SpaceX shares rocketed 19% in its Nasdaq debut, making its investment immediately profitable. SpaceX's powerful launch debut proved pivotal, raising over $2 trillion in value and firmly planting it within the ranks of the top-six public companies in America.
That IPO raised $75 billion, more than any previous record from Saudi Aramco in 2019. And it also turned Musk into the world's first trillionaire on paper, courtesy of his stakes in SpaceX and Tesla. The IPO included Australian superannuation funds, institutional investors and thousands of retail investors.
Sources: Smart Company, Reuters
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