A filing with the US Securities and Exchange Commission (SEC) submitted on Wednesday indicates that the company will offer 555.6 million shares, with underwriters given the option to acquire an additional 83.33 million shares.
If fully exercised, this offering could yield around $11.2 billion in revenue.
At the proposed price, SpaceX would achieve a market capitalisation of about $1.77 trillion, making it one of the most valuable publicly traded companies in the United States. This valuation would surpass Tesla’s current worth of approximately $1.6 trillion, positioning SpaceX as the seventh-largest publicly listed company in the country by market value.
Officially known as Space Exploration Technologies Corp., the company plans to list on Nasdaq on June 12 under the ticker symbol SPCX.
This surge in valuation would significantly enhance Musk’s wealth. Forbes estimates his fortune at $826 billion, which includes a $542 billion stake in SpaceX based on a previous company valuation of $1.25 trillion.
A valuation of $1.77 trillion could increase Musk’s net worth by around $223 billion, potentially making him the first individual to exceed $1 trillion in wealth. After the IPO, Musk is expected to maintain over 82% of the company’s voting power.
This proposed fundraising would comfortably surpass the previous record $26 billion IPO held by Saudi Aramco in 2019. It would also exceed Alibaba’s listing, which is currently the largest IPO realized in the US market.
Despite investor interest in SpaceX’s growth prospects, the company remains significantly unprofitable. Regulatory disclosures reveal an operating loss of $2.6 billion last year, despite revenues of $18.7 billion. Losses have persisted into this year as the company expands its operations.
SpaceX plans to utilize the IPO proceeds to enhance its artificial intelligence and space operations, increase infrastructure, and improve the satellite network for its Starlink Mobile service.
Goldman Sachs is spearheading the offering, with Morgan Stanley, Bank of America, Citigroup, and JPMorgan Chase acting as additional underwriters.
In contrast to most IPO candidates that provide an initial pricing range to assess investor interest, SpaceX has chosen to declare a fixed share price following a series of investor meetings prior to the official roadshow.
The company stated that the $1.77 trillion valuation is contingent on the completion of the EchoStar spectrum and Cursor transactions.
The recent filing also emphasized growing connections among Musk’s enterprises. SpaceX revealed its AI division, xAI, purchased $269 million in Tesla Megapack battery systems in April. Tesla had previously reported $430 million in sales of Megapacks to xAI the previous year.
This year, Musk merged SpaceX and xAI in a transaction that valued the combined entity at $1.25 trillion. Significant cross-ownership persists among the group companies, with Tesla owning 18.99 million shares of SpaceX, a stake valued at approximately $2.56 billion based on the IPO price.
In its filing, SpaceX noted its historical collaborations with Tesla through various commercial, licensing, and support agreements.
The company initially announced its IPO intentions in a prospectus filed late last month, revealing substantial losses and Musk’s dominant ownership stake. An amended filing submitted this week indicated that up to 5% of the shares available in the IPO might be allocated to select employees and eligible participants via a direct share program.
This listing occurs amid growing competition among AI-centered companies aiming for public market access. AI startup Anthropic confidentially submitted an IPO application earlier this week, while OpenAI is reportedly preparing its own filing shortly.
With agency inputs
