SpaceX IPO Prices at $135 Per Share, Targets Record $75 Billion Raise, June 05

SpaceX announced a $135 per share price for its initial public offering on June 3, targeting $75 billion in proceeds and a $1.75 trillion valuation. This is the largest IPO in history. The company breaks from Wall Street convention by setting a fixed price before investor roadshows, reflecting Elon Musk’s control over the process. Trading begins June 12.

Record-Breaking IPO Details

SpaceX plans to sell 555.6 million shares at $135 each, raising $75 billion and valuing the company at $1.75 trillion. This exceeds all U.S. IPOs combined in the last two years, according to Renaissance Capital strategist Matthew Kennedy. The company will rank among the top 10 most valuable U.S.-listed firms immediately upon listing. Pricing is set for June 11, with trading to begin June 12.

Unconventional Pricing Strategy

SpaceX told banks it will not move the $135 price, a week before the investor roadshow begins. Most major IPOs use a preliminary price range and adjust based on demand. Musk’s approach gives SpaceX leverage over investors and underwriters, who stand to earn millions in fees despite the sky-high valuation. The company also plans early index inclusion and strong founder control.

Retail Investor Access and Warnings

SpaceX allocated 30 percent of shares for retail investors, the largest retail allocation ever in a megacap IPO. Brokers including Fidelity, Charles Schwab, Robinhood, SoFi, and E*Trade will distribute shares. Fidelity lowered its minimum account balance to $2,000 from $100,000. However, Morningstar analysts warned the stock is significantly overvalued, citing untested technologies and significant future spending. Truist flagged potential volatility in early trading.

Space Sector Reaction

The IPO announcement sparked mixed reactions in public space stocks. Redwire, Momentus, and Rocket Lab fell over 20 percent this week, partly due to SpaceX’s lower valuation than earlier $2 trillion estimates. However, some investors seek indirect exposure through companies holding SpaceX stakes. Alphabet holds roughly 5 percent of SpaceX, worth about $87.5 billion at the current valuation.

Final Thoughts

SpaceX’s $135 IPO price locks in a $1.75 trillion valuation with trading set for June 12. Retail investors get unusual access through major brokers, but analysts warn of overvaluation and near-term volatility.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.