SpaceX Is Launching One of the Largest IPOs Ever—but What Is a ‘Greenshoe Option’?

After months of anticipation, trading of the tech company will begin on June 12.

BY MOSES JEANFRANCOIS, NEWS WRITER @MOSESJEANS

SpaceX Falcon Heavy rocket lifts off from launch pad 39A at the Kennedy Space Center. Photo: Getty Images

Ahead of its initial public offering on Friday, SpaceX is proceeding with a greenshoe option in hopes of reducing risk on one of the largest IPOs in history. To many experts, the move makes sense for a company of this size and scale: SpaceX has set its IPO price at $135 per share, valuing the company at roughly $1.75 trillion. But what exactly is a greenshoe option?

What is a greenshoe option?

A greenshoe........

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