News summary produced by Claude AI
SpaceX shares declined below their initial public offering price of US$135, closing at US$131.11 during trading on Thursday. The aerospace and technology company experienced significant volatility following its mid-June listing, which was the largest debut in stock market history. The share price reached a peak market valuation exceeding US$2.6 trillion in the first three days of trading but has since fallen to a record low of US$1.72 trillion.
Rinehart’s company, Hancock Prospecting, purchased over US$1 billion worth of SpaceX shares at the IPO. Based on the stock’s peak valuation, the company held an estimated paper gain of approximately US$500 million, which has now been eliminated. The latest decline represents an additional US$30 million paper loss from the peak value. Hancock Prospecting has not disclosed whether it has adjusted its position since the listing or plans to do so.
Thousands of Australians participated in the IPO, with CommSec reporting that 28,000 people applied to purchase shares, setting a record for applications to an Australian IPO. The global offering was oversubscribed at three times the available shares. Some Australian institutional investors reported selling their positions early to realize profits, though Rinehart has not indicated similar actions.
Market analysts attribute the recent decline to the fading initial enthusiasm surrounding the listing. SpaceX shares have fallen in seven of the last eight trading sessions. The sharpest single-day decline occurred when the company announced plans to issue additional debt through bond offerings. Short sellers betting against SpaceX have reported cumulative profits of US$3.88 billion. Analysts suggest long-term investors view the stock as part of an emerging technology sector that may require a decade or more to deliver returns.