SpaceX sets $135 fixed price in record $75 billion IPO, bypassing traditional roadshow
Trading begins June 12 on Nasdaq as Elon Musk retains 85.1% voting power and company remains loss-making despite strong demand.
Elon Musk’s rocket and satellite manufacturer SpaceX is conducting a record $75 billion initial public offering, targeting a valuation of approximately $1.8 trillion. The company has established a fixed share price of $135, a move that bypasses the traditional roadshow price-discovery process typically used to gauge investor demand and set a pricing range. Trading on the Nasdaq is scheduled to commence on June 12, following the final price setting on June 11.
Matt Kennedy, senior strategist at Renaissance Capital, described the approach as a significant departure from standard market practice. He noted that setting a fixed price transforms the roadshow from a price-discovery exercise into a sales process, as the company does not adjust pricing based on investor feedback. It remains unclear whether Musk will attend the roadshow in person, having previously appeared via video link at a last-minute agenda addition.
SpaceX is allocating up to 30% of the offering to individual retail investors, a tranche significantly larger than usual. Brian Jacobsen, chief economic strategist at Annex Wealth Management, suggested this massive retail allocation may serve as a safety net, leveraging Musk’s loyal following. The company is also pushing investment banks to lower their IPO fees, while employees may be permitted to sell shares in stages before the standard six-month lock-up period expires.
Governance provisions in the prospectus allow Musk to retain 85.1% of the combined voting power and include clauses that effectively prevent his removal as CEO unless he agrees. The listing will consist almost entirely of new primary shares, with Musk required to hold his stock for approximately one year. While Nasdaq index rules have been adjusted to potentially allow SpaceX to join the Nasdaq 100 quickly, it remains ineligible for the S&P 500 in the short term due to profitability requirements.
Reuters reported demand of roughly $150 billion for the $75 billion raise, indicating strong investor appetite despite the company’s current loss-making status. SpaceX is heavily investing in AI computers and plans for solar-powered data centres in space. Its most profitable unit, Starlink, is still being built out, and future success is heavily dependent on the Starship rocket, which remains in the testing phase.
