SpaceX sets $135 price for historic $74.4 billion IPO

SpaceX has filed an amended registration with the US Securities and Exchange Commission, establishing a concrete share price of $135 for its initial public offering. The move is atypical for the market, as companies usually set a price range to accommodate fluctuations in investor demand rather than a fixed figure a week before launch. The company retains the ability to adjust the final price, which will be announced on June 11, with shares expected to commence trading the following day.

If the shares trade at the set price, the offering is projected to raise $74.4 billion, potentially marking the largest initial public offering in history. The transaction would value the company at approximately $1.75 trillion. At this valuation, Elon Musk’s 50 per cent stake would be worth around $752 billion, positioning him to become the world’s first trillionaire.

Matthew Kennedy, a senior IPO market strategist at Renaissance Capital, noted the scale of the capital raise. He told The Times that the $74.4 billion target would exceed the total value of every US IPO combined over the previous two years. This unprecedented scale underscores the significant investor interest in the aerospace and technology giant.

Draft IPO paperwork filed earlier this year also revealed detailed financial arrangements between Musk’s entities. The documents indicate that Anthropic will pay the combined SpaceX-xAI entity $1.25 billion a month until May 2029 for access to xAI’s data centres. Additionally, the filings showed that X, formerly known as Twitter, experienced a $595 million decrease in ad revenue in 2024 due to a loss of advertising partners.

SpaceX intends to utilise the proceeds from the IPO to fund future projects, most notably its plan to launch one million satellites as solar-powered orbital data centres. The constellation will operate in sun-synchronous orbits at altitudes between 500 and 2,000 kilometres, where weather events do not obstruct sunlight. Musk has stated that these orbital facilities will become the cheapest method for generating AI computing power within a few years, leveraging declining rocket launch costs and continuous solar energy availability.