Elon Musk’s SpaceX is reportedly targeting a record-setting US$75 billion initial public offering (IPO) with an unconventional fixed share price of US$135, according to sources familiar with the matter. The rocket and satellite communications company, which develops and launches advanced rockets and spacecraft while also providing global internet services through its Starlink constellation, plans to sell 555.6 million shares. This ambitious move ahead of its investor roadshow aims for a staggering US$1.75 trillion valuation, marking a significant moment for public markets after a period of muted large-cap IPO activity.
The decision to set a fixed price prior to investor presentations and bookbuilding is highly unusual, diverging from the typical practice of offering a price range to gauge demand. Experts suggest this ‘take-it-or-leave-it’ approach reflects investor confidence in Musk’s ventures and the company’s unique position. However, SpaceX’s immense valuation, which relies on dominating technologies and markets that do not yet exist, such as Mars missions and AI data centres in space, presents a challenge for traditional assessment. While its Q1 revenue rose to US$4.69 billion from US$4.07 billion a year ago, the company recorded a net loss last year, widening to US$1.27 per share from 18 cents.
SpaceX’s listing is expected to lead a wave of mega IPOs, with artificial intelligence giants OpenAI and Anthropic also preparing to test public markets. The offering, structured as an all-primary deal, means all proceeds will go directly to the company, earmarked for expanding AI computing resources and its satellite network. Musk’s influence is a key factor, with plans to give retail investors a larger allocation and the founder committed to a 366-day share lock-up post-IPO. Despite potential corporate governance concerns regarding dual-class shares preserving strong founder control, the bet for many investors is as much on Musk’s track record as on SpaceX itself. The company aims to debut on Nasdaq under the ticker ‘SPCX’ on June 12.
