SpaceX on Thursday priced its initial public offering at $135 per share, making it the largest US IPO in history. The rocket and spacecraft manufacturer, led by Elon Musk, raised $75 billion by selling 555.56 million shares, valuing the company at $1.77 trillion. This surpasses the previous record held by Saudi Aramco, which raised $25.6 billion in 2019.
IPO Details and Market Reaction
The pricing caps a months-long effort that defied traditional financial norms. SpaceX set aside 30% of shares for retail investors, a unusually high allocation, and announced the price before the typical roadshow. Shares will begin trading on the Nasdaq on Friday under the ticker symbol SPCE. Analysts expect a first-day pop of 10-15%, though some caution that a larger surge could indicate hype-driven trading.
Valuation and Comparison
At $1.77 trillion, SpaceX is valued higher than JPMorgan Chase, Berkshire Hathaway, and Meta Platforms, despite being unprofitable last year. Its revenue is primarily driven by Starlink, its satellite internet unit, which serves millions across 164 countries. The company also highlighted its AI division, xAI, as a key growth area, though it lags behind competitors like OpenAI.
Strategic Moves and Governance
Musk structured the IPO to maintain strong founder control, holding 82% of voting power post-IPO. He also pushed for early index inclusion to broaden the investor base. The company has a multiyear cloud agreement with Google's Alphabet to secure computing capacity. SpaceX's mission is to enable multiplanetary life, and it claims a market opportunity of $28.5 trillion.
Underwriters and Future Outlook
Goldman Sachs, Morgan Stanley, BofA Securities, Citigroup, and J.P. Morgan are joint book-running managers. The US IPO market is expected to rebound, with Goldman Sachs forecasting record proceeds of $160 billion in 2026, driven by SpaceX and AI companies. However, challenges include competition from Blue Origin and reliance on government contracts.
