SpaceX is seeking a valuation of approximately $1.75 trillion in its planned initial public offering, positioning the Elon Musk-led company for one of the largest stock market listings ever recorded.
The company aims to raise at least $75 billion through the offering and has shared the valuation target with investors during preliminary meetings ahead of its IPO roadshow, according to people familiar with the matter cited by Reuters. The valuation includes a greenshoe option that would allow underwriters to sell additional shares if investor demand exceeds the initial allotment.
SpaceX's IPO is expected to be structured as an all-primary offering, meaning proceeds would go directly to the company rather than existing shareholders, according to the news agency. Reuters reported that investor presentations are scheduled to begin this week as the company prepares for its stock market debut.
Founded by Elon Musk in 2002, SpaceX has grown into a dominant force in the global space industry through its Falcon rocket program, cargo and crew transportation missions, as well as Starlink satellite internet network. The company has become a key launch provider for commercial customers, governments and NASA, while expanding broadband services through Starlink across dozens of countries.
SpaceX has reportedly been negotiating underwriting fees below 0.75%, an unusually low level for a deal of this size, according to Bloomberg News. Even at that level, the offering could still generate hundreds of millions of dollars in fees for participating investment banks because of the transaction's scale.
Goldman Sachs, Morgan Stanley, Bank of America, Citigroup and JPMorgan are among the banks leading the offering, according to Reuters.
The IPO is also expected to include a directed share program. A separate Reuters report said the company plans to reserve approximately 5% of shares for selected employees and other individuals designated by company leadership, while waiving certain lock-up restrictions that often apply in public offerings.
The proposed valuation has drawn attention because it significantly exceeds some independent estimates. Research firm Morningstar recently valued SpaceX at approximately $780 billion, less than half the valuation sought in the IPO, according to Reuters. Morningstar analysts cited questions surrounding some of the company's long-term growth assumptions and artificial intelligence initiatives.
Despite those differences, investor interest in SpaceX remains strong due to the company's leading position in commercial launch services and the rapid expansion of Starlink. The satellite internet business has become an increasingly important revenue source as demand for connectivity grows in remote and underserved regions.
The offering arrives during a period of renewed activity in equity capital markets. Several technology companies are preparing public listings as investors continue to direct capital toward businesses tied to artificial intelligence, communications infrastructure and advanced technology. Reuters reported that anticipated offerings from major private companies have helped fuel optimism across investment banking circles after a prolonged slowdown in the IPO market.
SpaceX has also attracted attention because of Musk's continuing control over the company. Previous reporting reviewed by Reuters found that Musk is expected to retain substantial voting power through a dual-class share structure following the IPO.
