SpaceX Targets $75 billion in IPO at $135 per share

SpaceX is preparing to launch its initial public offering (IPO) with a fixed price of $135 per share, targeting a $75 billion raise by selling 555.6 million shares. This approach defies Wall Street norms, where companies typically announce a price range before marketing, and comes after the rocket, satellite, and artificial intelligence firm confidentially filed for the IPO in March. Deliberations are ongoing, and details could still change before disclosure, potentially as soon as Wednesday, though formal marketing begins June 4 with pricing expected by June 11. The IPO would surpass Saudi Aramco’s 2019 record of $29.4 billion, aiming for a valuation of at least $1.8 trillion. Analysts note the valuation is ambitious, given SpaceX’s lack of profitability, with investors betting on future exponential growth. Fabien Yip of IG International described the valuation as ‘not cheap,’ while Vey-Sern Ling of Union Bancaire Privee acknowledged the market’s current favorability toward tech firms and Elon Musk’s influence. SpaceX’s IPO follows Musk’s history of unconventional financial moves, including a 2018 tweet claiming Tesla had secured funding at $420 per share, which led to a $40 million settlement with the SEC. The company is also negotiating razor-thin underwriting fees with Wall Street banks, though they may still earn around $500 million. Goldman Sachs Group was previously involved in discussions but not formally retained. The listing is part of a broader tech IPO pipeline, with AI rivals OpenAI and Anthropic also exploring public offerings. Alphabet Inc. separately announced an $80 billion equity raise on Monday, highlighting the competitive landscape. SpaceX’s rapid filing process and high-profile status have drawn significant investor attention, though the timeline could shift slightly. More than 1,000 current and former SpaceX employees are reportedly negotiating better pricing and access to sophisticated financial tools. The IPO’s success hinges on market confidence in SpaceX’s ability to sustain growth, particularly in its AI and satellite ventures, despite ongoing negotiations over terms and fees.