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SpaceX plans record $75B IPO at $135/share

5 Jun · 20:42 UTCwindow 24h

IN SHORT

SpaceX is preparing for a record-breaking Initial Public Offering (IPO), aiming to raise $75 billion at a $1.75 trillion valuation, with shares priced at $135. The IPO, expected to debut on the Nasdaq on June 12, could be the largest in history and is intended to fund expansion in AI computing and its satellite network. Investor demand has already exceeded targets, with the offering reportedly oversubscribed twice. While Wall Street banks host exclusive client events, concerns about an AI bubble and SpaceX's valuation persist, with some analysts valuing the company significantly lower. Efforts are underway to broaden retail investor access, including reduced minimums and tokenized equity options.

Key Numbers

$75 billionSpaceX IPO fundraising target

$1.75 trillionSpaceX IPO valuation target

$135SpaceX IPO share price

June 12SpaceX IPO expected debut date

June 11SpaceX IPO expected pricing date

30%SpaceX IPO allocation for retail investors

$2,000Fidelity minimum for retail IPO access

1,000+SpaceX employees negotiating IPO terms

0.75%SpaceX target IPO fees for investment banks

$500 millionProjected earnings for banks on SpaceX IPO

5%SpaceX IPO shares reserved for select employees

$150 billionSpaceX IPO investor demand

two timesSpaceX IPO oversubscription factor

$780 billionMorningstar valuation of SpaceX

50%Analyst estimate of SpaceX IPO overvaluation

Key facts

SpaceX plans to price its IPO at $135 per share.

The company aims to raise $75 billion through its IPO.

SpaceX targets a valuation of $1.75 trillion for its IPO.

The IPO is expected to debut on the Nasdaq on June 12.

Investor demand for the SpaceX IPO has reached $150 billion, double the target raise.

Morningstar analysts value SpaceX at $780 billion, significantly below the IPO target.

Fidelity has reduced its minimum for retail investors to $2,000 for IPO access.

SpaceX plans to allocate up to 30% of its IPO shares to retail investors.

S&P Dow Jones Indices will maintain existing eligibility rules, blocking fast entry for SpaceX.

SpaceX must meet standard profitability and 12-month seasoning criteria for index inclusion.

SpaceX is negotiating to pay investment banks less than 0.75% in fees for the IPO.

SpaceX has allocated 5% of IPO shares to select employees, exempt from lock-up.

SpaceX is poised to launch a historic Initial Public Offering (IPO), with plans to price shares at $135 each, aiming to raise $75 billion and achieve a valuation of $1.75 trillion. The offering is slated to debut on the Nasdaq on June 12, potentially becoming the largest IPO in history. Proceeds from the offering are earmarked for expanding SpaceX's AI computing capabilities and its satellite network. Investor demand has been robust, with the IPO reportedly oversubscribed twice, indicating a strong appetite for the shares.

Wall Street investment banks, including Bank of America, JPMorgan, and Morgan Stanley, are actively engaging clients through exclusive events, some featuring SpaceX executives, in anticipation of the IPO. However, the company's ambitious valuation faces scrutiny. Morningstar analysts have placed SpaceX's valuation at $780 billion, considerably lower than the IPO target, citing concerns over AI business economics and Starlink technology. One analyst even suggested the $1.75 trillion valuation overvalues the company by over 50%. Despite these concerns, Fidelity has lowered its minimum account requirement to $2,000 for retail investors and plans to allocate up to 30% of shares to individual investors, utilizing a lottery system due to anticipated high demand. Crypto exchange Kraken is also facilitating access through tokenized equity instruments on its xStocks platform, and Interactive Brokers UK clients will have access.

This mega-IPO comes amidst a broader trend of AI companies, including Anthropic and OpenAI, preparing for public listings to fund their development towards Artificial General Intelligence (AGI). The potential success of SpaceX's IPO could test the current rally in high-flying U.S. stocks, though market sentiment may be tempered by recent disappointing tech earnings and upcoming economic data. S&P Dow Jones Indices, however, will maintain its existing listing rules, requiring SpaceX to meet standard profitability and 12-month seasoning criteria before potential inclusion in indices like the S&P 500, which would not be possible until June 2027 at the earliest. SpaceX is also negotiating for lower fees from investment banks, seeking less than 0.75% for the $75 billion offering, though banks like Goldman Sachs and Morgan Stanley are still projected to earn substantial amounts.

SpaceX is also implementing specific share allocations, reserving 5% of IPO shares for select employees and individuals chosen by executives, exempt from post-IPO lock-up restrictions. Over 1,000 SpaceX employees are reportedly organizing to negotiate better terms, pricing, and tax-saving products from wealth management firms, anticipating significant windfalls. Concerns exist for Chinese investors, who fear missing out on the IPO due to Beijing's crackdown on overseas share sales and increased scrutiny of offshore brokerages. Separately, EchoStar's stock surged following a $17 billion spectrum license deal with SpaceX, positioning it as a proxy for the space company ahead of its IPO, and options volume for EchoStar has increased due to this anticipation. Applied Aerospace & Defense, a defense technology firm, has also priced its IPO, raising $650 million at a $3.54 billion valuation.

SpaceX plans record $75B IPO at $135/share

PiQ Daily

SpaceX plans record $75B IPO at $135/share

PiQ Daily

Key facts

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