SpaceX IPO Roadshow Launches at Fixed Price: Wall Street Says Stock Is Worth Half the Ask
SpaceX launched its IPO roadshow with a fixed $135 per share price, valuing the company at $1.75 trillion and aiming to raise $75 billion, despite Morningstar estimating its worth at $780 billion. The company’s structure allows early insider sales and grants Elon Musk 82% voting control, while existing shareholders face a 366-day lockup period.
SpaceX began its IPO roadshow on June 4 with an unusual fixed-price approach, setting its stock at $135 per share, valuing the company at $1.75 trillion and targeting $75 billion in funding. The move bypasses traditional IPO pricing ranges, with the company and underwriters—Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, and JPMorgan Chase—confident in demand. Morningstar, however, values SpaceX at $780 billion, 55% below the IPO’s target, citing concerns over its $62.8 billion allocation to pay off Elon Musk’s vendors and investors before new capital reaches AI projects. The IPO, if successful, will surpass Saudi Aramco’s 2019 record of $29.4 billion and position SpaceX as the seventh-most-valuable U.S. company, ahead of Tesla’s $1.6 trillion market cap. Musk retains 82% voting control through Class B shares despite owning 42% equity, leaving retail investors with Class A shares holding minimal influence. Existing shareholders, including Musk, cannot sell for 366 days, but 5% of shares—worth $3.75 billion—are reserved for employees and insiders, who face no restrictions and could sell immediately upon trading debut on June 12 under the ticker SPCX. The fixed-price strategy signals strong institutional demand, as the company is raising only primary shares, with proceeds going entirely to SpaceX. Nasdaq’s new Fast Entry rule allows SpaceX to qualify for the Nasdaq-100 index after just 15 trading days, eliminating the prior seasoning requirements. Index funds tracking the Nasdaq-100 will buy shares at market price upon rebalancing, regardless of valuation. The roadshow concludes with a planned Nasdaq listing on June 12, following a pricing announcement on June 11. Critics note the IPO’s structure prioritizes Musk’s existing obligations, with $62.8 billion earmarked for debt repayment before new funds support AI or other ventures. Retail investors, allocated 30% of the offering via platforms like Robinhood, Fidelity, and Charles Schwab, gain economic exposure but no governance rights. The roadshow’s fixed pricing and rapid index inclusion reflect SpaceX’s aggressive approach to entering public markets.
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