SpaceX IPO raised $10bn more than thought

SpaceX raised $10bn (£7.5bn) more than initially thought when it sold shares to the public on Friday - bringing in a total of $85.7bn.

Elon Musk's rocket and Artificial Intellgience (AI) company pulled off the biggest initial public offering (IPO) in history when it joined New York's Nasdaq stock exchange last week.

The listing had raised $75bn from investors, which Musk told employees will be spent funding a "significant growth phase".

But the banks which backed the IPO exercised a so-called "greenshoe" clause, which let them purchase an extra $10bn of SpaceX shares.

The extra $10bn raised, revealed in a statement by SpaceX announcing the completion of the listing, would by itself rank as one of the biggest IPOs in history.

It came thanks to a financial mechanism known as an overallotment option, more commonly referred to as a "greenshoe" option.

When a company goes public in a highly anticipated listing, investor demand can outstrip the initial supply of shares .

To prevent wild price swings and ensure a smoother launch, a greenshoe agreement lets the banks handling the listing sell more shares than originally planned.