SpaceX has officially gone public
SpaceX priced its IPO at $135 per share and raised $75 billion, making it the largest IPO in history. The offering values the company at approximately $1.77 trillion, immediately placing it among the largest publicly traded U.S. companies.
Why it’s such a big deal:
- Largest IPO ever, surpassing the previous record held by Saudi Aramco.
- Around 30% of the shares were reserved for retail investors, an unusually large allocation for an IPO of this size.
- The deal was reportedly 3.5–4× oversubscribed, indicating extremely strong demand before pricing.
- Elon Musk retains roughly 82% of the voting power, meaning he continues to control the company despite it being public.
What investors are buying
The company has three primary businesses:
- Launch services (Falcon rockets and government/commercial launches)
- Starlink, which has become SpaceX’s primary revenue and profit engine
- Starship, the long-term Mars and deep-space program that many investors view as a significant growth opportunity.
Reasons for optimism
Many investors believe:
- Starlink could continue growing rapidly as global broadband expands.
- SpaceX has a dominant position in commercial launch services.
- Future opportunities include defense, satellite communications, lunar missions, and Mars exploration.
Reasons for caution
The valuation is aggressive.
- At roughly $1.8 trillion, investors are paying a substantial premium for expected future growth.
- The company reportedly lost money last year while continuing to invest heavily in Starship and AI-related initiatives.
- As with many high-profile IPOs, volatility could be significant in the first several months.
Our View
If you’re investing for the next 10–20 years, SpaceX has the potential to become one of the defining companies of this generation, similar to what companies like Amazon and NVIDIA became in prior decades.
If you’re considering buying immediately after the IPO, history suggests it’s worth recognizing that blockbuster IPOs often experience significant price swings before settling into a longer-term trend. As an alternative, accumulating shares over time rather than making a single large purchase on day one may prove to be a good option.