SpaceX IPO raises $75 billion in biggest debut of all time

SpaceX, officially Space Exploration Technologies Corp., has made history with the largest initial public offering (IPO) ever, raising $75 billion by pricing 555.6 million shares at $135 each. The company’s market value now stands at $1.77 trillion, with a fully diluted valuation of about $1.8 trillion, according to a statement on its website. Underwriting banks have an option to buy an additional 83.3 million shares, potentially increasing the deal’s size to $86 billion, while demand exceeded available shares by over four times. The IPO reflects strong retail investor interest, with over $100 billion in orders placed by Elon Musk’s fan base, despite only 20% of shares being reserved for them. Critics like veteran short-seller James Chanos dismissed the offering as a ‘hopes-and-dreams IPO,’ citing SpaceX’s unproven profitability and reliance on enthusiasm for Musk and artificial intelligence. However, rule changes allowing faster inclusion in indices like the Nasdaq-100 may sustain demand from passive funds and institutional buyers. SpaceX’s valuation leap follows its acquisition of Musk’s xAI in February, which combined the companies under a $1.25 trillion private valuation, up from $1 trillion and double the $800 billion valuation from a December insider share sale. The company’s IPO sets the stage for upcoming AI-focused listings, including Anthropic PBC and OpenAI, which could each seek valuations exceeding $1 trillion this year. Analysts note the IPO’s significance as a precursor to the AI sector’s public market expansion, with strong demand persisting despite market volatility. The influx of capital from SpaceX, Alphabet Inc.’s $85 billion equity offering, and potential future tech IPOs has sparked debate over whether investor appetite can absorb the supply. Chief market strategist Anthony Saglimbene of Ameriprise called the IPOs a sign of enduring AI demand, despite recent economic disruptions. SpaceX’s debut underscores its rapid growth, blending aerospace, satellite, and AI ventures under a single valuation. While retail enthusiasm drives immediate interest, long-term performance will hinge on execution and profitability in its diverse business segments. The company’s inclusion in major indices could further cement its status as a benchmark for future tech and AI investments.