Elon Musk’s SpaceX pulls off world’s largest IPO, valued at $1.77 trillion – Firstpost

Elon Musk’s SpaceX has completed the world’s largest initial public offering, raising a record $75 billion and securing a valuation of $1.77 trillion, cementing the rocket and satellite company as one of the most valuable businesses ever to debut on public markets.

The company priced its IPO at $135 per share on Thursday, selling 555.56 million shares ahead of its Nasdaq debut on Friday. The offering surpassed the previous global record held by Saudi Aramco, which raised $25.6 billion in its 2019 stock market listing.

The blockbuster listing marks a defining moment for both Musk and the broader US capital markets, underscoring investor appetite for companies tied to space technology, satellite communications and artificial intelligence despite concerns about lofty valuations.

At $1.77 trillion, SpaceX will rank among the largest publicly traded companies in the United States, ahead of corporate giants including JPMorgan Chase, Berkshire Hathaway, Eli Lilly and Meta Platforms. The valuation also exceeds that of Musk’s electric vehicle maker Tesla.

The IPO caps months of preparation during which Musk challenged several Wall Street conventions. SpaceX allocated roughly 30 per cent of the offering to retail investors, an unusually high share for a deal of this size, and announced the
IPO price before completing the traditional investor roadshow process used to gauge institutional demand.

The deal also strengthens Musk’s grip on the company. Following the IPO, he is expected to retain approximately 82 per cent of SpaceX’s voting power, preserving significant founder control even after the public listing.

Starlink remains key growth engine

Founded in 2002, SpaceX has evolved from a rocket launch provider into a diversified space and technology company with operations spanning launch services, satellite internet and artificial intelligence infrastructure.

The company said it is responsible for more than four-fifths of the mass launched into orbit globally over the past three years. However, its Starlink satellite internet business remains the primary source of revenue, serving millions of consumers, businesses and government agencies across more than 160 countries and territories.

SpaceX recently signed a multi-year cloud services agreement with Google, securing additional computing capacity as competition intensifies in the AI sector.

The company has also highlighted ambitions in artificial intelligence through its ties to Musk’s xAI venture, arguing that access to vast amounts of real-time data and computing infrastructure could provide a strategic advantage in the rapidly evolving AI market.

Valuation debate intensifies

Despite the enthusiasm surrounding the listing, some investors have questioned whether SpaceX’s valuation is justified.

Unlike many of the technology giants it now rivals in market value, SpaceX reported a loss last year and remains heavily dependent on government contracts and long-term growth projections tied to the commercialisation of space.

The company faces growing competition from rivals such as Blue Origin, founded by Amazon founder Jeff Bezos, as the race to commercialise space and secure government contracts accelerates.

IPO market revival

SpaceX’s landmark debut is expected to provide a major boost to the US IPO market, which has been recovering after years of subdued activity and volatility.

Investment bank Goldman Sachs has forecast US IPO proceeds could quadruple to a record $160 billion in 2026, supported by a pipeline of high-profile technology listings that could include AI firms OpenAI and Anthropic.

For now, investor attention will shift to Friday’s market debut, where analysts expect significant volatility given the scale of the offering and the intense retail interest surrounding the stock.

Market watchers say a modest first-day gain would be considered healthy, while an outsized surge could fuel concerns that speculation rather than fundamentals is driving demand.

Regardless of its opening-day performance, SpaceX’s historic IPO has already secured a place in financial history, marking the largest share sale ever undertaken and pushing Musk’s space ambitions into a new era as a publicly traded company.