SpaceX has set a share price of $135 for its upcoming initial public offering (IPO), which is expected to raise $74.4 billion and value the company at approximately $1.75 trillion. This announcement comes ahead of the finalized pricing set for June 11, with shares slated to begin trading the following day.
According to Reuters and The New York Times, it is uncommon for companies to establish a concrete price just a week ahead of going public, as they typically provide a price range to accommodate investor demand fluctuations.
If SpaceX’s shares sell at $135, the IPO would become the largest in history. Elon Musk’s 50 percent stake in the company would also be worth around $752 billion, potentially making him the first trillionaire. Matthew Kennedy, a senior IPO market strategist at Renaissance Capital, noted that raising $74.4 billion would exceed the total of every US IPO combined over the past two years.
SpaceX filed draft registration paperwork with the US Securities and Exchange Commission earlier this year, revealing financial details that highlight the revenue streams of Musk’s companies. For instance, Anthropic is contracted to pay $1.25 billion per month until May 2029 to utilize xAI’s data centers. The filing also disclosed a $595 million decline in advertising revenue for X, Musk’s social media platform, attributed to a loss in advertising partners.
The proceeds from the IPO will be directed towards future initiatives, including plans to create orbital data centers. SpaceX aims to launch 1 million satellites that will function as solar-powered data centers. These satellites are intended to be positioned in sun-synchronous orbit at altitudes between 500 and 2,000 kilometers, locations that would minimize weather-related obstructions. Musk stated that these orbital data centers could become the most cost-effective solution for AI computing power in a few years due to lower launch costs and solar energy utilization.
