SpaceX IPO Prices at $135, Raising Record $75 Billion, June 12

Elon Musk’s SpaceX priced its initial public offering at $135 per share on June 11, raising $75 billion in the largest IPO on record. The company begins trading on Nasdaq under ticker SPCX on June 12, with a valuation of $1.77 trillion. This deal dwarfs Saudi Aramco’s 2019 IPO, which raised $29.4 billion, and signals major investor appetite for space and artificial intelligence companies.

Record-Breaking Numbers Set the Stage

SpaceX offered 555.6 million shares at $135 each, generating $75 billion in proceeds. Underwriters hold a greenshoe option to sell an additional 83.3 million shares worth roughly $11.2 billion if demand exceeds the initial allotment. The offering values SpaceX at approximately $1.77 trillion, blowing past the previous record held by Saudi Aramco’s $29.4 billion 2019 listing. SpaceX confirmed the IPO pricing on Thursday, with trading set to begin Friday on the Nasdaq.

Three Businesses, One Valuation

SpaceX combines three separate operations: its core rocket and spacecraft business, Starlink satellite internet service, and xAI artificial intelligence company. Starlink is the only profitable unit and accounts for the bulk of revenue. Analysts note that justifying the $1.77 trillion valuation requires success in at least two of these three areas. The company holds more than 80% of voting power through Musk, creating concentration risk for public shareholders.

Retail Demand Exceeds Expectations

SpaceX targeted a retail allocation of roughly 30%, far above the typical 5% to 10% for most IPOs. The company reported retail orders exceeding $100 billion, indicating strong appetite from individual investors. IPO shares are running four times oversubscribed according to Reuters, though institutional investors often inflate these figures to secure allocations. On June 12 morning, Nasdaq market makers will match buy and sell orders to determine the opening price.

What This Means for Investors

Meyka rates SPCX a B with a hold recommendation, citing extreme valuation metrics. The stock trades at 202.8x sales and 12.6x book value, with technical indicators showing overbought conditions (RSI at 99.77). Pre-IPO trading on Hyperliquid showed the stock at $162, a 20% premium to the $135 offer price, suggesting market participants expect a pop on day one. However, historical data shows the hottest IPOs typically drop 55% within their first year before stabilizing.

Final Thoughts

SpaceX’s $75 billion IPO marks a historic moment for space and AI investing, but Meyka’s B rating and extreme valuation multiples suggest caution. With RSI overbought and analyst consensus mixed, the stock faces significant downside risk beyond the first-day pop.

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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.