SpaceX Files for IPO With Proposed $135 Share Price and $1.75 Trillion Valuation

SpaceX has disclosed a proposed share price of $135 in filings related to its planned initial public offering, which would value the company at approximately $1.75 trillion. The filing outlines plans to raise $75 billion through the offering, exceeding the previous record set by Saudi Aramco’s $25.6 billion IPO in 2019.

The proposed price represents an increase from SpaceX’s earlier valuation of $1.25 trillion set earlier in the year. Companies do not always announce target prices well in advance of trading, and the final price will be determined by investor demand at the time of the offering. SpaceX has indicated that shares would trade on the Nasdaq stock index, with some reports pointing to a possible start date of 12 June.

Data from Dealogic shows that nearly half of companies listing publicly over the past 30 years have traded below their initial offering price in subsequent periods. Samuel Kerr, head of equity capital markets research at Mergermarket, described the valuation as high relative to current sales when compared with major technology firms including Alphabet, Amazon, Apple, Meta, Nvidia, Microsoft and Tesla. Kerr noted that the valuation incorporates expectations of future revenue and earnings rather than present results.

Space Exploration Technologies Corp., the formal name of the company, reported $18.6 billion in revenue for the prior year alongside a net loss of $4.9 billion. In the first quarter of the current year, revenue reached $4.7 billion with a net loss of $4.3 billion. The balance sheet lists $102 billion in assets, primarily rockets and related equipment, against $60.5 billion in debt.

SpaceX operates launch vehicles and ground infrastructure that also support its Starlink satellite internet service. The company has expanded into additional areas including artificial intelligence, data centers and social media platforms. Earlier this year it acquired xAI, the developer of the Grok chatbot that originated within the X platform and utilized data from that service for model training.

Laurence Pevsner, a partner at Lux Capital, told the BBC’s Today programme that SpaceX has shifted from a launch and satellite broadband business to one that also encompasses social media and artificial intelligence operations. Pevsner characterized the AI component as a significant factor in the current valuation and described it as carrying risk for future shareholders.

Other technology companies have similarly sought additional capital to support artificial intelligence infrastructure spending. OpenAI has been reported to be considering its own public listing later this year. SpaceX’s proposed valuation and offering size remain subject to market conditions at the time shares begin trading.