SpaceX files for $75 billion IPO at $2 trillion valuation
The world’s most valuable private company aims to raise $75 billion, with only its Starlink division reporting profit in the first quarter amid surging capital expenditure driven by xAI.
SpaceX has filed for an initial public offering on the Nasdaq, seeking to raise $75 billion at a valuation nearing $2 trillion. If completed, the deal would potentially become the largest initial public offering in history, according to a prospectus released late Wednesday. The filing confirms recent reports from Reuters regarding the scale and structure of the offering led by CEO Elon Musk.
The prospectus outlines a dual-class share structure that will allow Musk to retain 85.1 per cent of the combined voting power. Under this arrangement, Class B shares held by insiders carry 10 votes each, while Class A shares sold to the public carry one vote. This governance model concentrates control with Musk and a small group of insiders, eroding typical shareholder protections found in many public listings.
Financial disclosures reveal a complex operational landscape. Only the connectivity segment, powered by the Starlink satellite internet service, generated profit during the first three months of the year. Meanwhile, capital expenditure surged to $10.1 billion in the same period, with 76 per cent attributed to the acquisition of xAI. This shift has transformed the company into a more AI-focused entity, intensifying spending as it pursues ambitions beyond rockets and satellites.
SpaceX’s stated mission is to build the systems and technologies necessary to make life multiplanetary. The company outlined potential future markets including asteroid mining, space-based manufacturing, and energy production on the Moon and Mars. These long-term goals present a mix of profitable satellite operations and costly futuristic ventures, a combination that analysts note makes valuation difficult in public markets.
The listing poses significant implications for the broader market. Banks leading the underwriting stand to collect substantial fees if the offering achieves its targeted size, while the deal serves as a major coup for the Nasdaq. However, industry experts warn that the sheer scale of the IPO could absorb an outsized share of investor attention and market liquidity, potentially squeezing out other potential listings.
A test flight of the next-generation Starship rocket is scheduled for Thursday, coinciding with the release of the filing. If SpaceX reaches its targeted valuation, it would instantly force a rethink of Wall Street’s "Magnificent Seven" club of trillion-dollar tech giants, integrating a space-focused entity into the core of the global equity market.
