By Manya Saini

June 15 (Reuters) – SpaceX said on Monday that its underwriters had exercised the “greenshoe” option to purchase additional shares, increasing the total proceeds from its initial ‌public offering to $85.7 billion from $75 billion that it raised last week.

Elon Musk’s rocket, AI ‌and internet conglomerate, which sold 555.56 million shares at $135 apiece to raise the record $75 billion, became the largest IPO ​in history even before the greenshoe option was exercised.

The ‘greenshoe’ is a standard feature of most U.S. stock market listings that acts as a safety valve, helping underwriters support the stock and limit sharp price swings in the weeks after trading begins due to strong demand.

SpaceX’s shares surged 19% after the ‌blockbuster Nasdaq debut on Friday.

Reuters reported ⁠last week, citing sources, that the IPO had attracted more than $250 billion of investor orders, far exceeding the amount the company was seeking to raise. ⁠The IPO was oversubscribed by roughly three-and-a-half to four times, underscoring the extraordinary demand for the offering.

The debut, which analysts described as a “Goldilocks” stock market entry, hit the sweet spot of rewarding investors with ​a strong ​first-day gain, while avoiding the perception that the ​company had left significant money on the ‌table by pricing the offering too conservatively.

Its shares rose another 7% in early trading on Monday, adding to the strong gains recorded in Friday’s historic market debut, which lifted the company’s market capitalization above $2 trillion and made Musk the world’s first trillionaire.

Underwriters typically exercise the greenshoe option when a stock trades above its IPO price. SpaceX said its underwriters purchased 83.3 million additional shares ‌through the option.

The greenshoe option is typically exercised in ​IPOs that have generated extraordinary demand from both Main ​Street and Wall Street investors.

“Demand significantly outstripped ​the initial supply. Retail interest was high, but several major funds submitted ‌massive orders, so underwriters wanted to tap ​the overallotment to satisfy these ​massive positions,” said Brian Jacobsen, chief economic strategist at Annex Wealth Management.

The deal has shattered IPO records and become an early test of investor appetite for a new wave ​of mega-listings, with AI heavyweights ‌Anthropic and OpenAI reportedly expected to follow it into the public markets later this ​year.

Goldman Sachs and Morgan Stanley were the lead underwriters for the offering.

(Reporting by ​Manya Saini in Bengaluru; Editing by Shinjini Ganguli)