Elon Musk’s SpaceX is preparing for what could become the largest IPO in history, with investors being asked to back the space and satellite giant at a staggering $1.77 trillion valuation.
The company plans to raise up to $75 billion by selling 555 million shares at a fixed price of $135 each, with trading expected to begin on Friday. Unlike a traditional IPO, Musk has reportedly bypassed the usual Wall Street pricing process, setting a non-negotiable offer price and shifting price discovery to the public market.
Demand appears exceptionally strong, with reports suggesting the offering is already several times oversubscribed. A significant retail allocation of around 30% has also been earmarked, far above the typical 5-10% seen in most IPOs.
Despite the enormous fundraising, only around 4-5% of SpaceX’s total shares will be freely traded, creating a potentially tight supply of stock. That scarcity could be amplified by expected inclusion in major Nasdaq and Russell indices, generating additional demand from passive investment funds.
The valuation, however, is generating considerable debate. SpaceX generated $18.7 billion in revenue last year and is expected to produce around $25 billion this year, yet remains loss-making. At the proposed valuation, investors would be paying roughly 95 times historical sales and more than 50 times forecast revenue, substantially higher than many of the world’s largest technology companies.
Supporters argue SpaceX is far more than a rocket company. Through its dominant launch business and rapidly expanding Starlink satellite network, the company is increasingly viewed as a strategic infrastructure platform spanning communications, defence, artificial intelligence and space-based technologies.
Bulls believe investors are buying exposure to future growth opportunities that extend well beyond current revenues, including AI infrastructure, sovereign communications networks and next-generation space technologies.
Sceptics counter that much of the valuation depends on future technologies and commercial opportunities that remain unproven. Some analysts estimate the company’s intrinsic value could be less than half the IPO price, highlighting the speculative nature of the offering.
The listing is also expected to have wider implications for financial markets. Investors may rotate capital away from existing technology and semiconductor stocks to participate in the offering, potentially creating short-term volatility across the sector.
Beyond SpaceX itself, the flotation is widely seen as a critical test of investor appetite for large-scale technology IPOs and could set the tone for anticipated future listings from major AI companies such as OpenAI and Anthropic.
Whether the IPO ultimately validates the valuation or exposes excess optimism, it is likely to become one of the most closely watched stock market debuts in modern history.
