SpaceX Prices IPO at $135 Per Share, Challenging Traditional Wall Street Practices

SpaceX IPO Sets Records with $135 Price Tag and $75 Billion Fundraising Goal

In a groundbreaking move, SpaceX has publicly set a price of $135 per share for its initial public offering (IPO), marking a significant departure from the traditional Wall Street price-discovery process. This decision underscores the company's commitment to a unique fundraising strategy, led by CEO Elon Musk, aiming to raise a record-breaking $75 billion.

According to its amended IPO filing, SpaceX is seeking to value the company at $1.75 trillion, a figure that would place it among the top 10 most valuable U.S.-listed firms. The IPO, which is expected to value the company at a lofty multiple, will kick off an investor roadshow on Thursday, with pricing expected on June 11. Trading in shares will begin on the Nasdaq the next day.

SpaceX's IPO has few precedents among major U.S. IPOs, and its decision to publish a price a week ahead of the offering reflects Musk's standing in the financial world as an adventurer with a golden touch. The company's plan to give retail investors a larger role in allocations and push for early index inclusion also sets it apart from traditional IPOs.

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The company's decision to allocate as much as 30% of the offering to individual investors is an unusually large retail tranche aimed at tapping into Musk's cult-like following and broadening ownership of the company. This move has sparked a rush among investors to get a piece of the deal, given Musk's reputation and control of the offering.

However, concerns about the sky-high valuations that SpaceX will garner have raised eyebrows on Wall Street. Despite these concerns, major firms have been eager to participate in the deal, with some investors seeking a valuation of $1.5 trillion or less. The road show, where companies and their bankers sound out investors to arrive at a price range for their share sale, is where SpaceX will emphasize its bankers' relationships with potential investors and their understanding of the market for the coming offering.

The company's financials also raise eyebrows, with a net loss of $4.94 billion in 2025, despite revenue rising 33% to $18.67 billion. This has led some to question the company's valuation, with a revenue multiple of over 90x being considered high by any standard. Nevertheless, SpaceX's unique position as a leader in the space industry and its interests across aerospace, telecom, and defense make it a compelling investment opportunity for many.

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