SpaceX, Elon Musk's rocket and space company, has set its initial public offering (IPO) price at $135 per share before officially commencing its market debut. This valuation could push the company's worth beyond $1.77 trillion, with Elon Musk highly likely to become the world's first trillionaire.
According to documents filed with the U.S. Securities and Exchange Commission (SEC) last Wednesday, SpaceX plans to offer 555.6 million shares, aiming to raise approximately $75 billion. Additionally, the underwriters hold an option to purchase an extra 83.33 million shares at the IPO price, potentially raising about $11.2 billion more.
Following the public listing, Elon Musk is expected to retain voting control exceeding 82% of the company.
A consortium of banks will manage the offering, led by Goldman Sachs, followed by Morgan Stanley, Bank of America, Citigroup, and JPMorgan Chase.
SpaceX plans to list on the Nasdaq stock exchange under the ticker symbol SPCX on 12 June.
Typically, companies preparing for an IPO set a price range to gauge investor demand at various price levels.
However, SpaceX took a different approach by setting a definitive IPO price immediately at $135 per share, following several investor meetings prior to the formal roadshow.
Moreover, if the acquisitions of EchoStar Spectrum and Cursor complete as planned, and the IPO price remains at $135, SpaceX's valuation would reach approximately $1.77 trillion.
This valuation would position SpaceX as the seventh most valuable company in the U.S., surpassing Tesla, which currently stands at about $1.6 trillion.
In the latest updated filing, SpaceX revealed that its AI subsidiary, xAI, purchased Tesla Megapack large-scale battery systems worth $269 million in April. Tesla had previously disclosed selling Megapacks to xAI valued at $430 million the prior year.
This activity reflects the strong business interconnections among companies within Elon Musk's empire, frequently transacting with each other.
Back in February, Musk merged SpaceX and xAI in a deal valuing the combined entity at $1.25 trillion. Additionally, Tesla holds 18.99 million SpaceX shares, worth about $2.56 billion at the set IPO price.
SpaceX's market debut under the ticker SPCX is poised to become the largest IPO in history, with a size three times greater than Alibaba's offering, which currently holds the record for the largest U.S. IPO.
This listing also comes as major AI companies are accelerating plans to go public. Anthropic filed a confidential IPO registration with the SEC last Monday, while OpenAI is expected to do the same within weeks.
Furthermore, SpaceX submitted its initial prospectus to the SEC late last month, revealing multi-billion-dollar losses and not confirming when profitability might be achieved, while disclosing Elon Musk’s substantial shareholding.
In a revised filing submitted Monday, the company stated it would reserve up to 5% of IPO shares for employees and related parties to purchase via a Direct Share Program.
As SpaceX advances its public listing, speculation in financial circles suggests Elon Musk’s long-term objective may extend beyond simply taking SpaceX public.
Reports indicate Musk has discussed internally the possibility of merging SpaceX and Tesla. CNBC cited current Tesla employees revealing this topic is openly discussed within the company.
Over the years, Tesla and SpaceX have shared resources, personnel, and business collaborations, making a merger between the two companies a plausible scenario.
If realized, such a deal could become one of the largest mergers in business history, further consolidating Musk's empire that integrates AI, space exploration, energy, and electric vehicles.
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