SpaceX sets USD 135 share price for world's largest IPO, valuing at USD 1.77 trillion
New Delhi, June 4
SpaceX set a price for its initial public offering at USD 135 a share, positioning Elon Musk's rocket and artificial intelligence company to exceed the 2019 initial public offering of Saudi Aramco in both valuation and money raised.
According to a news report by The New York Times, the USD 135 share price values the company at USD 1.77 trillion, making it the largest initial public offering (IPO) in history. SpaceX will raise USD 74.4 billion from the offering.
As per the news report, this valuation represents an increase of more than 40 per cent compared to the USD 1.25 trillion valuation the company gave itself in February. Saudi Aramco previously held the record, holding a USD 1.7 trillion valuation and raising more than USD 29 billion when it went public in 2019.
"Most companies that go public set a preliminary price range for their stock offering before settling on a final number in case investor demand for their shares changes. But Mr. Musk and SpaceX sidestepped that and simply declared one price for investors. SpaceX could still change that price but is not expected to do so. It is likely to begin trading on the Nasdaq next week under the ticker symbol SPCX," the news report said.
"More than every U.S. I.P.O. combined in the last two years," the report quoted Matthew Kennedy, a senior IPO market strategist at Renaissance Capital.
The offering serves as a bellwether for other massive tech offerings, including Anthropic, which filed confidentially on Monday, and OpenAI. Both artificial intelligence start-ups approach valuations of USD 1 trillion.
According to the news report, Musk, who controls a 50 per cent stake in SpaceX, will see his holdings valued at just over USD 752 billion. Regulatory filings show Musk cannot sell some shares until the company hits specific operational milestones. A surge in early trading could make him the world's first trillionaire. Musk controls more than 85 per cent of SpaceX shareholder votes through super-voting shares.
An IPO prospectus released last month revealed the company's financial results, with SpaceX reporting a loss of more than USD 4.9 billion last year due to increased spending on artificial intelligence, following a USD 791 million profit in 2024. As per the news report, revenue rose 33 per cent to USD 18.7 billion. The company will use the capital to fund orbital data centers, a lunar factory, and Mars expeditions.
"The records are broken more than once," the report quoted Nicolas Owens, an equity researcher with the investment research firm Morningstar.
"A trillion-dollar market capitalization for a company going public used to be unheard-of," Owens said, "Now it seems normal."
— ANI
Reader Comments
As someone who follows space tech, this is historic. But I'm concerned - USD 135 per share? That's out of reach for most regular investors in India. The ₹10,000 SIP crowd will have to watch from the sidelines. Also, that USD 4.9 BILLION loss last year is scary. AI spending is eating profits, but revenue growth is strong. Baki sab theek hai, but valuation seems inflated.
Honestly, I'm amazed. Saudi Aramco's record stood for 6 years and now it's being shattered. This shows how much money is sloshing around in global markets. Meanwhile, our Indian startups struggle to get funding at reasonable valuations. SpaceX's AI play is interesting - orbital data centers could be a game-changer for cloud computing. Let's see if retail investors here can get a piece through Nasdaq.
Crazy days we're living in. A company that lost nearly $5 billion last year is valued at $1.77 trillion? FIIs will throw money at this, but I'm staying cautious. Remember what happened with WeWork? But then again, Musk is different. He actually delivers on impossible timelines. If they pull off Mars by 2030, early investors will laugh all the way to the... well, Mars. 🤷♂️
This is peak capitalism. Musk gets 50% stake worth $752 billion, but can't sell until milestones are hit. Smart move to keep him focused. But $74 billion raised? That's more than India's entire IPO market in a good year! Our startups need to take notes. Also, lunar factory and orbital data centers - this isn't just a rocket company, it's the infrastructure company of the future.
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