SpaceX is poised for its largest-ever IPO: targeting a valuation as high as $1.8 trillion and aiming to raise $75 billion—surpassing Saudi Aramco’s record—with initial pricing terms expected as early as this Wednesday and a Nasdaq listing scheduled for June 12. Elon Musk has insisted on an underwriting fee below 0.75%, compelling 23 top-tier investment banks to collectively accept reduced margins—a move that could reshape the entire IPO industry’s fee structure.
SpaceX is accelerating what would be the largest IPO in history, planning to announce offering terms as early as this Wednesday, with a target valuation of approximately $1.75 trillion to $1.8 trillion and aiming to raise up to $75 billion.
According to The Wall Street Journal, citing people familiar with the matter, SpaceX plans to file an updated prospectus on Wednesday afternoon, disclosing its target price range for the first time and formally initiating the IPO pricing process. SpaceX intends to sell less than 5% of its shares, with a total value between $60 billion and $80 billion, targeting a valuation of $1.75 trillion to $1.8 trillion.
Bloomberg reported that finalizing terms the night before roadshows begin will give investors more time to assess the valuation—particularly given SpaceX’s plan for a relatively short roadshow. Pricing could be announced as early as June 11, with shares officially listed on the Nasdaq under the ticker "SPCX" on June 12.
One focal point of this offering is its exceptionally low underwriting fee. According to Bloomberg, SpaceX is negotiating with underwriters to push the fee below 0.75%, far lower than the typical IPO range of 4% to 7%. This aggressive move directly dampens market expectations for underwriting revenues from several major upcoming IPOs this year, although banks participating in this listing could still collectively earn approximately $500 million in base underwriting fees.
If SpaceX achieves its $75 billion fundraising target, it would surpass Saudi Aramco’s 2019 record of $29.4 billion to become the largest IPO in history. Meanwhile, SpaceX’s listing comes amid intensifying competition for AI-related financing: Anthropic has confidentially filed for an IPO, and Alphabet has announced plans to raise $80 billion through a share offering.
Offering Structure: Small Stake Sale, Significant Valuation Jump
According to The Wall Street Journal, citing people familiar with the matter, SpaceX’s IPO will involve the sale of less than 5% of its shares—well below the typical IPO proportion—corresponding to an offering size of approximately $60 billion to $80 billion.
This valuation represents a substantial increase from the roughly $1.25 trillion valuation SpaceX held earlier this year following its acquisition of AI company xAI. Bloomberg previously reported that SpaceX is now targeting a minimum valuation of $1.8 trillion.
Under regulations, companies may formally commence marketing activities 15 days after their IPO filing becomes public. SpaceX will launch its roadshow in New York later this week, during which company management will meet with large institutional investors.
The report noted that various offering details and the specific timeline could still be adjusted prior to the updated filing on Wednesday afternoon.
Exerting Maximum Pressure on Wall Street Underwriting Fees
Faced with a fundraising target as high as $75 billion, Wall Street investment banks have made significant concessions in fee negotiations.
According to Bloomberg, citing people familiar with the matter, although the underwriting fee could fall below 0.75%, this would still rank among the largest IPO fee arrangements in history. Historical data shows that underwriting fees for mega-IPOs typically exceed 1%. The last time such an exceptionally low rate of 0.75% was seen was during the U.S. Treasury’s arrangement of General Motors’ listing in 2010. At that time, Wall Street, eager to rebuild public trust after the financial crisis, accepted this floor rate.
Among the massive syndicate of 23 banks, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, and JPMorgan are serving as lead underwriters. Goldman Sachs and Morgan Stanley, given their central roles, will receive the largest share of the fees.
Goldman Sachs is responsible for stock settlement and fund collection and handled a large volume of orders during early trading. Morgan Stanley will serve as the stabilization agent, leading the opening trade on the first day of listing. JPMorgan has taken on an additional role as the “party planner,” organizing a listing celebration event for SpaceX next week at its new headquarters in Midtown Manhattan.
Triggering a 'Stress Test' for Capital Market Liquidity
SpaceX’s listing is historically significant both in terms of scale and industry impact.
If the $75 billion fundraising target is successfully achieved, it will more than double Saudi Aramco’s record $29.4 billion IPO in 2019. However, market attention is focused not only on SpaceX itself but also on its spillover effects.
This comes at a time when top-tier technology and AI companies are fiercely competing for capital.
AI company Anthropic has confidentially filed a draft registration statement for an IPO, aiming to be the first to enter the public markets, while rival OpenAI is also actively preparing for a listing. Industry observers worry that SpaceX’s ultra-low fee structure could set a new benchmark for subsequent IPOs by companies like Anthropic and OpenAI, further compressing Wall Street’s profit margins in this IPO cycle.
Additionally, Alphabet announced on Monday evening a record-breaking $80 billion equity issuance program. The rapid succession of these mega-scale financing deals will undoubtedly severely test Wall Street’s capacity to mobilize capital from public markets.
Editor /rice