SpaceX prices record $85.7bn IPO as demand hits $250bn
Elon Musk’s SpaceX has executed the largest IPO in history, raising $85.7 billion, though post-listing volatility signals investor unease over its $1.8 trillion valuation and path to profitability.
SpaceX sold 638.9 million Class A shares at $135 each, raising $85.7 billion after underwriters exercised their full overallotment option. The June 12 debut on the Nasdaq Global Select Market and Nasdaq Texas under the ticker SPCX surpassed every previous offering in history. At its pricing, the company achieved an approximate $1.8 trillion valuation.
Institutional demand overwhelmed the deal, with orders exceeding $250 billion—more than three times the initial offering size. A syndicate led by Goldman Sachs, Morgan Stanley, BofA Securities, Citigroup and JPMorgan managed the listing. The transaction provided a revenue jolt to Wall Street, with Goldman Sachs specifically reporting a sharp increase in equity underwriting fees from the blockbuster deal.
Despite commanding a massive market capitalisation, SpaceX is not yet profitable. Public filings show the company generated roughly $19 billion in revenue last year, relying heavily on its Starlink satellite internet subscriptions and commercial launch services. The capital raised provides a substantial runway to fund the next-generation Starship rocket programme, expand the Starlink constellation and finance long-term research into interplanetary travel.
The immediate aftermarket performance highlights the tension between SpaceX's technological dominance and its financial fundamentals. Since its debut, the stock has retreated significantly from its opening highs as investors reassess the premium valuation against the company's lack of current earnings. Growing competition in the commercial space sector and the prospect of increased share supply following future lock-up expirations are compounding these concerns.
The listing ends more than two decades of private status for the company Elon Musk founded in 2002. The offering marks a watershed moment for the broader commercial space industry, opening one of the world’s most critical infrastructure providers to public capital. SpaceX serves as a primary launch contractor for NASA and the U.S. Department of Defense, and the transaction will substantially increase Musk’s personal wealth.
