Explained: SpaceX's IPO includes a 'greenshoe' option. Here's what that means

SpaceX's IPO includes a standard 15% greenshoe (over-allotment) option granted to Morgan Stanley, allowing purchase of up to 83 million additional shares at the $135 IPO price within 30 days. If fully exercised, the greenshoe would bring total shares to 638.9 million and raise an additional $11.2 billion for SpaceX. The article explains the greenshoe mechanism using historical examples from Alibaba's 2014 IPO (fully exercised to cap a 38% first-day rally) and Uber's 2019 IPO (used to buy shares in the open market to prop up a falling stock).