SpaceX Expect $74 billion in IPO

SpaceX expects IPO to raise $74.4 billion

Valuing the company at $1.75 trillion.

SpaceX has set a price of $135 for shares that will be sold in its upcoming IPO, the company revealed in its amended filing. According to Reuters and the New York Times, it is unusual for companies to set a concrete price a week before their IPO, and they usually just set a price range as investor demand changes.

The company could still change its stock price. It will announce the final price on June 11 and the shares will trade the next day. If SpaceX shares sell for $135, the IPO is expected to raise $74.4 billion, making it the largest in history and giving the company a valuation of around $1.75 trillion. It could also make Elon Musk the first-ever billionaire. With shares listed at $135, Elon Musk's 50% stake in the company would be worth around $752 billion.

These are amounts that most ordinary people would have difficulty understanding. Matthew Kennedy, senior IPO market strategist at Renaissance Capital, told the Times that raising $74.4 billion would be "more than all U.S. IPOs combined in the last two years."

SpaceX quietly filed a draft registration document for its IPO with the U.S. Securities and Exchange Commission earlier this year. When the documents were made public, they shed light on the finances of Musk's companies and their clients. Anthropic, for example, will apparently pay the combined SpaceX-xAI entity $1.25 billion per month until May 2029 so that it can use xAI's data centers. It also revealed that X, the social media site, saw its advertising revenue decline by $595 million in 2024 due to a "loss of advertising partners."

The company plans to use the money raised from its IPO to fund its future projects, including its ambitions to build orbital data centers. SpaceX wants to launch 1 million satellites to function as data centers powered by the sun. The plan is to place the constellation in a sun-synchronous orbit at altitudes between 500 and 2,000 kilometers, where no clouds or other weather events obstruct the sun. Musk said orbital data centers will be the cheapest way to generate computing power for AI within a few years, thanks to falling costs of rocket launches and the fact that data centers will be powered by solar energy.