SpaceX eyes $75 billion IPO, valuing company at $1.77 trillion

A record-breaking float

SpaceX, the rocket, satellite and artificial intelligence company led by Elon Musk, is set to make its stock market debut on Friday in what is expected to be the largest initial public offering (IPO) in history. The company plans to raise about $75 billion by offering 555,555,555 shares at $135 apiece, according to regulatory filings reported by several outlets. The listing would value SpaceX at around $1.8 trillion, making it the seventh-largest publicly traded US company, ahead of Tesla and Meta, as reported by Al Jazeera.

The size of the offering would eclipse the previous record held by Saudi Aramco, which raised between $25.6 billion and $29.4 billion when it went public in 2019, depending on the source. The discrepancy aside, multiple reports agree that SpaceX's IPO will be the largest ever.

The company, founded by Musk in 2002, operates the Starlink satellite network, which has around 8,000 satellites and is its only profitable business, according to Deutsche Welle. Earlier this year, SpaceX merged with Musk's AI firm xAI, adding an AI component to its portfolio. The company reported revenue of $18.7 billion in 2025 but posted a net loss of $4.9 billion, as noted by Al Jazeera and The Guardian.

Investor demand and valuation questions

The offering has drawn significant interest, with reports indicating it is oversubscribed by several times. According to The Guardian, the offering attracted more than $250 billion in bids, while a South China Morning Post report said institutional investors placed orders for about $10 billion or more, and up to 30% of the shares are set aside for retail investors.

Despite the strong demand, some analysts question whether the valuation is justified. Morningstar, the investment research group, values SpaceX at $63 per share, well below the IPO price of $135, and warns of "a major disconnect between market expectations and underlying fundamentals," as reported by The Guardian. Michael Field, chief equity strategist at Morningstar, said the valuation is "extremely speculative" given the many untested technologies, particularly in the AI business.

Other experts echoed concerns about the high multiple. Tim Hatt of GSMA Intelligence told Reuters, as reported by Deutsche Welle, that a 90-times revenue multiple "is high by any standard," but noted that there are no true public comparables for SpaceX. Igor Pejic, tech investing strategist and author of "Tech Money," told France 24 that the company is "overvalued" at $1.75 trillion.

Control and governance

Musk will retain effective control of SpaceX after the IPO through a dual-class share structure that gives him more than 82% of voting rights, according to Al Jazeera and Deutsche Welle. His ownership stake is reported at around 42%. The structure has drawn attention from regulators: US Senator Elizabeth Warren called for the SEC to delay the IPO over valuation and governance concerns, as reported by The Guardian.

The concentration of control is seen as both a strength and a risk. On one hand, it allows Musk to pursue long-term ambitions like colonizing Mars without short-term pressure, as noted by Deutsche Welle. On the other, it creates "key-person risk" and limits shareholders' ability to influence decisions, as reported by Deutsche Welle.

The IPO has also drawn attention from institutional investors. Australian mining magnate Gina Rinehart's Hancock Prospecting made a "significant investment" in SpaceX, reportedly worth at least A$1.4 billion, according to The Guardian. Rinehart praised Musk as a "truly exceptional person" and expressed interest in collaborating on AI infrastructure.

Global and Australian implications

In Australia, the IPO will have a direct impact on ordinary citizens through their superannuation funds. According to ABC Australia, Australian super funds and passive investment vehicles are likely to hold SpaceX shares as the company joins major indices. This has raised concerns among government officials about the country's reliance on Starlink, which has become a critical communications service for remote areas.

The Australian Signals Directorate has warned that satellite operators have "significant control" over networks that may exceed national regulatory capacity, according to documents obtained by ABC Australia. A Department of Home Affairs presentation from May 2025 flagged "availability risks" due to Starlink's offshore nature. These concerns come as around 200,000 Australians use Starlink, and major telcos Telstra and Optus have signed deals with SpaceX.

Meanwhile, in China, the IPO is expected to accelerate the listing plans of domestic commercial space firms, according to the South China Morning Post. More than ten Chinese rocket manufacturers and suppliers are pursuing listings in Shanghai or Hong Kong, with Emposat starting pre-IPO tutoring this month. However, a Chinese academic quoted by the South China Morning Post argued that China does not need to copy SpaceX, citing differences in the US and Chinese models of space development.

First-day expectations

SpaceX shares are expected to begin trading on the Nasdaq on June 12. Some investment products tracking the company suggested a first-day valuation of around $2.2 trillion, as reported by Al Jazeera. The Guardian reported that Hancock Prospecting's investment came as SpaceX's valuation reached $2.1 trillion after its first day of trading.

Musk, already the world's richest man, is expected to become the first trillionaire as a result of the float, according to multiple reports. The BBC described the listing as the "highest-value stock listing in history."

Despite the fanfare, the company's prospectus warns that it may never become profitable, as noted by The Guardian and Deutsche Welle. Its ambitious plans include launching AI data centers into space and establishing colonies on the moon and Mars.

Perspectives

The IPO has drawn contrasting perspectives from analysts and investors. Proponents, like Gina Rinehart, see SpaceX as a rare company led by a visionary, operating in crucial sectors with long-term potential. Skeptics, like Morningstar's Michael Field, advise investors to sit out the IPO, citing a "major disconnect" between expectations and fundamentals. Igor Pejic similarly called the company overvalued, while acknowledging Musk's influence may draw in investors. In China, a Beihang University professor argued that China should not copy the US model of space development, emphasizing different strengths and approaches.