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 Nasdaq on June 12.
- SpaceX's IPO is reportedly oversubscribed twice, with $150 billion in demand.
- Fidelity is lowering its account minimum to $2,000 for retail investors in the IPO.
- Morningstar estimates SpaceX's value at $780 billion, significantly below the IPO target.
- SpaceX reported a $4.95 billion net loss last year.
- SpaceX secured tax incentives for a $55 billion chip manufacturing project in Texas.
- SpaceX's website and IPO documents are inaccessible in mainland China and Hong Kong.
- A potential merger between SpaceX and Tesla is speculated for 2027.
- SpaceX has allocated 5% of its IPO shares to select employees, exempt from lock-up.
SpaceX is poised to launch a historic initial public offering (IPO), aiming to raise a record $75 billion by selling shares at $135 each, which would value the company at $1.75 trillion. The offering is slated to price on June 11 and begin trading on the Nasdaq on June 12, potentially marking the largest IPO in history. Proceeds from the offering are earmarked for expanding SpaceX's AI computing capabilities and its Starlink satellite network. Investor demand appears robust, with reports indicating the IPO is oversubscribed by a factor of two, attracting $150 billion in investor demand. Fidelity has lowered its account minimum to $2,000 for retail investors and plans to allocate up to 30% of shares to them, utilizing a lottery system to manage high demand. Kraken and Interactive Brokers UK are also offering access to the IPO for their clients.
Despite strong demand, the proposed valuation has drawn scrutiny. Morningstar analyst Nicholas Owens estimates SpaceX's value at $780 billion, significantly below the company's target, citing a $4.95 billion net loss last year. Another analyst suggests the IPO overvalues the company by over 50%. Concerns about an AI bubble and intense cash burn persist, with some investors being cautious due to upcoming inflation data and tech earnings. SpaceX's amended IPO filing also highlights water access as a risk factor due to its expanding data centers. Furthermore, SpaceX's website and IPO documents are inaccessible in mainland China and Hong Kong due to security grounds and US critical technology export restrictions, potentially limiting participation from those regions.
In parallel, other AI companies are also preparing for public debuts. Anthropic has confidentially filed for a U.S. IPO, potentially valuing it at over $1 trillion, and has selected Morgan Stanley and Goldman Sachs to lead its efforts. OpenAI is also reportedly preparing for a listing. S&P Dow Jones Indices is considering changes to its listing rules that could allow unprofitable companies, like many in the tech and AI sectors, to be included in indices, though they have so far maintained existing rules, delaying SpaceX's potential inclusion until it meets standard profitability and 12-month seasoning criteria. SpaceX has also secured significant tax incentives for its $55 billion Terafab chip manufacturing project in Grimes County, Texas, despite local opposition.