SpaceX Sets $135 IPO Price, Targets $75B Raise and $1.75T Valuation Ahead of Roadshow

NEW YORK: In a significant development ahead of its investor roadshow, SpaceX has announced plans to set its initial public offering (IPO) price at $135 per share, aiming to raise an unprecedented $75 billion. This information comes from sources familiar with the matter.

The rocket and satellite communications company intends to sell approximately 555.6 million shares, targeting a valuation of $1.75 trillion. This IPO is poised to lead a surge of high-profile private companies entering public markets, following a period of subdued large-cap IPO activity. SpaceX is expected to be joined by artificial intelligence leaders OpenAI and Anthropic in this wave.

Unconventional Pricing Strategy

SpaceX’s decision to establish a fixed price prior to investor presentations and bookbuilding is highly unusual. Typically, companies preparing for an IPO set a price range to guide valuation expectations, allowing for adjustments based on investor demand. A strong interest can elevate the final price to the upper end of the range or beyond before the market debut.

The roadshow for SpaceX is set to commence on Thursday, following preliminary “testing the waters” meetings with potential investors.

Innovative Governance and Retail Investor Inclusion

Elon Musk has redefined the IPO process for SpaceX in several ways. The company plans to allocate a larger portion of shares to retail investors, aiming to engage Musk’s substantial following and broaden ownership. Reports indicate that as much as 30% of the offering may be directed toward individual investors.

The IPO is expected to be structured as an all-primary offering, meaning all proceeds will benefit the company, with existing shareholders unable to sell their shares during the IPO. Musk will be required to retain his SpaceX shares for 366 days post-IPO, signaling his commitment to the enterprise.

Funds raised from the IPO will be utilized for expanding AI computing resources and enhancing SpaceX’s satellite network.

Valuation and Market Context

Earlier this year, SpaceX merged with Musk’s AI startup xAI, a deal that valued the rocket company at $1 trillion, while the developer of the Grok AI chatbot was valued at $250 billion. The absence of direct competitors complicates the valuation process for SpaceX.

Morningstar recently estimated SpaceX’s valuation at $780 billion, which is 48% lower than its current private-market valuation. This valuation is primarily driven by its Starlink satellite communications business, which has been the main source of revenue and growth for the company.

SpaceX’s future growth prospects are closely tied to advancements in AI and technologies that have yet to be developed, including solar-powered data centers in space. The company is targeting a potential market worth $28.5 trillion.

At a valuation of $1.75 trillion, with projected revenue of $18.67 billion in 2025, SpaceX would trade at a trailing price-to-revenue multiple of 93.7 times. For comparison, Rocket Lab is trading at a multiple of 118, Palantir Technologies at 81, and Tesla at nearly 17. SpaceX cannot be evaluated on a price-to-earnings basis due to a reported net loss last year.

Implications for the IPO Market

This IPO is anticipated to initiate a wave of mega IPOs, with SpaceX, OpenAI, and Anthropic collectively poised to add nearly $4 trillion in market capitalization to public markets, intensifying competition for investor capital.

Investor interest in SpaceX is significantly influenced by Musk’s reputation. His successful track record with Tesla and ability to mobilize retail investors could drive strong demand for shares. However, two of SpaceX’s three business segments are currently operating at a loss, with only the Starlink segment generating profits.

In the first quarter of this year, SpaceX reported revenue of $4.69 billion, an increase from $4.07 billion in the same period last year. However, losses widened to $1.27 per share, compared to 18 cents per share in the previous year. By 2025, the company is projected to report a net loss of $4.94 billion, down from a profit of $791 million.

Concerns regarding corporate governance may arise, as Musk retains significant voting power alongside a small group of insiders due to a dual-class share structure outlined in the IPO prospectus. SpaceX plans to list on the Nasdaq under the ticker symbol “SPCX,” with the debut expected on June 12.

Goldman Sachs, Morgan Stanley, BofA Securities, Citigroup, and J.P. Morgan are serving as joint book-running managers for the offering, leading a consortium of global investment banks underwriting the deal.

Source: www.emirates247.com

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Published on 2026-06-03 08:00:00 • By the Editorial Desk