SpaceX is set to debut on the Nasdaq Friday at $135 per share, drawing a record $250 billion in investor demand as Elon Musk’s rocket and satellite company becomes the world’s largest initial public offering in history.
The $135 price point, confirmed by SpaceX in early June, values the company at approximately $1.77 trillion and targets a $75 billion raise, according to Reuters. This shatters the previous record held by Saudi Aramco’s 2019 IPO, which raised $29.4 billion at a $1.7 trillion valuation.
Investor appetite for SPCX stock has far exceeded the offering size. Reuters reported that demand is approaching four times oversubscribed, with orders exceeding $250 billion—more than three times the $75 billion the company aims to raise. That level of interest underscores confidence in SpaceX’s dual engines: its dominant launch business and Starlink’s growing satellite internet revenue, which has already turned profitable.
Breaking Wall Street Norms on Price Discovery
SpaceX’s approach to pricing has upended longstanding investment banking convention. Rather than setting a price range and allowing investor demand to guide the final price during a roadshow, SpaceX publicly fixed the $135 price ahead of investor presentations, according to Reuters. This move gives investors no room to negotiate—they must accept the price or forgo the offering.
Fortune noted that SpaceX rejected the traditional Wall Street playbook by pricing its offering at a fixed point instead of following the standard discovery process. The company told underwriters it would not move from the $135 price, despite the overwhelming demand, according to reporting by Unusual Whales.
The IPO also targets an unusually high retail allocation. CNBC reported that SpaceX is earmarking 30 percent of the float for retail investors, compared to the typical 5 to 10 percent for most IPOs, expanding access to public market participants.
AI Infrastructure and Starlink as Valuation Drivers
SpaceX’s $1.77 trillion valuation reflects investor belief in the company’s expansion beyond rockets. Yahoo Finance reported that SpaceX estimated its quantifiable total addressable market at $28.5 trillion, with $26.5 trillion of that tied to artificial intelligence. ARK Invest’s Chief Futurist Brett Winton argued in a CNBC video that Starlink’s satellite internet business alone is sufficient to support a valuation near $2 trillion, given the company’s role in providing critical infrastructure for AI model training and deployment.
The company has also merged with xAI, Elon Musk’s artificial intelligence startup, positioning SpaceX as a player in the race to build foundational AI infrastructure. Forbes noted that SpaceX and xAI together power a $1.77 trillion bet on AI infrastructure, merging satellite broadband with AI compute demand.
Sources
- Reuters — SpaceX IPO price of $135 per share, $75 billion raise target, $250 billion investor demand, fixed-price structure breaking Wall Street convention
- CNBC — SpaceX’s 30 percent retail allocation target, fixed price mechanism, Starlink valuation commentary
- Forbes — $1.77 trillion valuation, AI infrastructure angle with xAI merger
- Yahoo Finance — $28.5 trillion total addressable market estimate, $26.5 trillion AI-focused portion
- The Motley Fool — Saudi Aramco’s $29.4 billion 2019 IPO as previous record
- Fortune — Wall Street convention comparison, fixed-price approach explanation
- Unusual Whales — SpaceX commitment to $135 price despite demand
