SpaceX Aims to Price Record-Setting IPO at $135 per Share

SpaceX Sets $135 Price Tag for Record-Breaking $75 Billion IPO

Elon Musk's SpaceX plans to price its initial public offering at $135 per share, selling 555.6 million shares to raise $75 billion in the largest IPO ever, a source familiar with the matter told Reuters. This move is expected to lead a wave of high-profile private companies preparing to test public markets after years of muted large-cap IPO activity.

SpaceX's valuation relies heavily on the company dominating technologies and markets that do not yet exist, including Mars missions and AI data centers in space. The company's valuation is a crucial aspect of its plans, which are widely viewed as one of the most consequential offerings in recent history alongside artificial intelligence giants OpenAI and Anthropic.

The specific target price of $135 per share is extremely unusual at this stage. Typically, companies planning to go public set a price range before talking to investors in a series of presentations called a roadshow. SpaceX's roadshow begins on Thursday, and the company is expected to meet with prospective investors as investment bankers try to build demand for a record-breaking $75 billion order book.

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According to Reuters, the company is considering allocating as much as 30% of the offering to individual investors, an unusually large retail tranche aimed at tapping into Musk's cult-like following and broadening ownership of the company. Musk will be required to hold his SpaceX shares for 366 days after the IPO, a signal to investors that he will not be selling any of his investment.

Proceeds of the IPO will be used for purposes including expanding AI computing resources and SpaceX's satellite network. The company has merged with Musk's AI startup xAI earlier this year in a deal that valued the rocket company at $1 trillion and the developer of the Grok chatbot at $250 billion.

SpaceX has no direct peers, making valuing the company subject to interpretation. Its growth prospects are tied heavily to AI, and its plans rely on unbuilt technologies for a significant portion of future revenue, including solar-powered data centers in space, as it targets a potential $28.5 trillion market.

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