SpaceX negotiates sub-0.75% underwriting fees for historic $75 billion IPO

Elon Musk’s SpaceX is negotiating underwriting fees of less than 0.75% for its initial public offering, aiming to raise approximately $75 billion this month, Bloomberg News reported on Tuesday. The compressed fee structure reflects the scale of the transaction, which is projected to be the largest stock market debut in history. Despite the low percentage, the participating banks are expected to earn approximately $500 million from the deal, according to people familiar with the matter.

Goldman Sachs, Morgan Stanley, BofA Securities, Citigroup and J.P. Morgan are acting as joint book-running managers for the offering. They are leading a syndicate of global investment banks, with Goldman Sachs and Morgan Stanley positioned to receive a larger share of the fee pool compared to the other 21 brokers involved. The reported figures represent the base fee and exclude other discretionary incentives that may be attached to the underwriting agreement.

SpaceX is currently pitching investors a corporate valuation of around $1.75 trillion, with some reports citing figures up to $1.8 trillion. The listing would mark the entry of one of the world’s most valuable private companies into public markets, offering direct investor access to its diverse business units spanning space launch services, satellite broadband and artificial intelligence.

The timeline for the offering targets a roadshow launch on June 4, with shares expected to list as early as June 12. The company has yet to confirm the final valuation or total funds raised, as these figures remain subject to market conditions and investor demand during the book-building process.

The negotiated fee structure draws historical parallels to General Motors’ 2010 IPO, which involved a 0.75% underwriting fee negotiated with the U.S. government. As the deal moves toward execution, SpaceX, Morgan Stanley and Goldman Sachs declined to comment on the specific terms of the underwriting agreement.