SpaceX prices record IPO at US$ 75 billion at US$ 135 per share aiming for a US$ 1.75 trillion valuation

SpaceX set the price of its IPO at US$ 135 per share on Tuesday, June 3, and will sell 555.6 million Class A common stock to raise US$ 75 billion. This offering surpasses the US$ 29.4 billion raised by Saudi Aramco in 2019, making it the largest debut in history by gross value. The implied valuation reaches US$ 1.75 trillion, exceeding Microsoft’s market capitalisation and ranking behind only Apple and Nvidia among publicly listed companies.

Goldman Sachs and Morgan Stanley lead a syndicate of 23 bookrunners listed in the prospectus. The banks have the option to purchase an additional 83.33 million shares at the IPO price, which would add US$ 11.2 billion to the total raised. The roadshow begins on June 4, with the final pricing set for June 11 and the Nasdaq debut, under the ticker SPCX, expected on June 12.

The xAI Cash Position and Risk Factors

The documentation details how the group has repositioned itself as AI infrastructure after absorbing xAI. Consolidated SpaceX incurred a loss of US$ 4.94 billion in 2025 and US$ 4.28 billion in just the first quarter of 2026, with liabilities of US$ 60.5 billion related to the merger operation with Musk’s lab. xAI recorded a loss of US$ 6 billion in 2025, and the S-1/A filed with the SEC on June 1 projects a burn of US$ 10 billion in 2026.

Starlink’s operations remain profitable and finance the rest of the balance sheet. The risk factors list Anthropic as a nominal customer whose contract supports part of the AI segment projection: if termination occurs, or if GPU costs do not decrease as promised, the segment could drag the consolidated entity into a liquidity squeeze. The same section lists eight ongoing regulatory investigations against Grok for non-consensual synthetic image generation, an exposure that crosses the European AI Act, fully effective from August 2 this year for general-use models with systemic risk.

The Dual Class Structure and the Passive Index Problem

Class A shares are offered to the public with one vote each, while the Class B shares held by Musk and a select group of insiders are worth ten. After the operation, the CEO will control 82.4% of the voting power, setting up SpaceX as a controlled company under Nasdaq rules, with exemptions from independent committee requirements. This choice creates friction for entry into the S&P 500, which requires sufficient public float and governance that allows for committee swapping, conditions that the proposed setup does not meet.

For the global mandate manager in Frankfurt, Tokyo, or São Paulo, this means that SPCX will not enter the default weighting of MSCI World and S&P 500 ETFs in the initial months, and allocation will depend on active mandates. Starlink has been operating in Brazil under Anatel approval since 2022, with around 250,000 contracts as of January this year according to the agency, concentrated in the Northern and Central-Western municipalities. A listed SpaceX will have to report quarterly to this market, with independent auditing on the maintenance costs of the constellation, an item currently absent from the corporate sale material. In the UK, OneWeb, controlled by Bharti Airtel and the British government, observes the IPO as a signal of how much capital the only global scale LEO competitor can access for the Starship cycle.

The Thesis Banks Need to Sell in Two Weeks

The syndicate will need to justify a multiple that simultaneously prices both a mature satellite telecom business and a bet on a space data centre whose return depends on Starship operating commercially. Hock Tan, CEO of Broadcom, stated on Wednesday during an earnings conference that Anthropic will contract for 1 gigawatt of custom TPUs in 2026 and 3 gigawatts in 2027. None of the scenarios in SpaceX's prospectus explain how the company would compete for this demand against terrestrial hyperscalers, whose cost per watt is a fraction of orbital. The pricing on June 11 will determine whether institutional investors are willing to pay the weighted average of the two theses or require a discount on one of them.