The IPO of Elon Musk’s rocket and satellite company SpaceX is going to come next week. Whose valuation can be 1.75 trillion dollars. This means that if the company is listed, the GDP of 180 countries of the world will appear less than the market cap of this company. At present, South Korea is the 15th largest economy in the world. Whose GDP size is estimated at 1.93 trillion dollars. After that is Turkey. Whose GDP is 1.64 trillion dollars. When SpaceX’s IPO comes and gets listed, the valuation of the company will be higher than that of Türkiye. According to Reuters report, this IPO will include completely new shares. Three people associated with this case gave this information to Reuters on Tuesday. According to sources, this IPO is expected to be completely prepared as an ‘all-primary offering’. This means that all the money received from this will go to the company and the existing shareholders of SpaceX will not be able to sell any of their shares in this IPO. Let us also tell you what kind of details have come to light.
Mega IPO of Musk’s company
Elon Musk’s rocket and satellite company SpaceX is aiming to achieve a valuation of $ 1.75 trillion in its big IPO (Initial Public Offering). This IPO will include completely new shares. In the Reuters report, sources said that this IPO is expected to be prepared as an ‘all-primary offering’. This means that all the money received from this will go to the company and the existing shareholders of SpaceX will not be able to sell any of their shares in this IPO. Reuters had earlier reported that shareholders would probably have to wait until the company releases its first quarter earnings report. This will happen under a ‘staggered lockup’ (arrangement for selling shares in installments).
After some initial meetings with investors – or the process of ‘gauging the market’ – the company has indicated that it plans to raise at least $75 billion in its ‘base offering’, sources said. The sources gave this information on the condition of anonymity because it is confidential. One of the sources said that the ‘greenshoe option’ has been fixed at 15 percent. This option will allow underwriters to sell additional shares when investor demand is higher than expected.
These companies have also brought primary offering
The ‘primary offering’ is not entirely new, although it is not the most common approach for large listings. Large listings often involve a mix of primary and secondary shares, giving early investors an opportunity to sell their stake. For example, Rivian Automotive’s IPO in 2021 was structured entirely as a ‘primary issue’. At that time, early investors like Amazon and Ford did not sell their shares at the time of listing, because the company was raising capital for its expansion. Some other features of the proposed offering, which are different from a traditional public listing, include early inclusion in the Nasdaq 100 index and certain special provisions that give Musk effective control over the board, as well as giving him the authority as chief executive (CEO) and chairman.
Valuation of 1.75 trillion
This is the first time that SpaceX has told banks its specific targets for raising funding and valuation after initial meetings with investors. The company is now preparing for the IPO, which is expected to be the biggest IPO till date. Reuters had earlier reported that the company was considering an initial valuation of about $1.75 trillion. Reuters had earlier reported that the ‘roadshow’ (program to attract investors) for this IPO is going to start from Thursday. Sources cautioned that as meetings with investors begin, there may be changes in these plans, including the amount of funding. This IPO will give ordinary investors a rare opportunity to invest in Musk’s vision for space, satellite communications and artificial intelligence. This opportunity will be available through SpaceX, which has emerged as the most valuable part of the business empire of the world’s richest person.
Wave of MEGA IPOs
This listing is expected to trigger a wave of mega IPOs. SpaceX, OpenAI and Anthropic together could add nearly $4 trillion in market capitalization to the public markets and further intensify the competition for investors’ money. Unlike most IPO candidates, SpaceX has no clear benchmark in the public market. Analysts say investors will have to gauge comparisons with aerospace, telecom and defense companies, while also keeping in mind Starlink’s growth potential and Musk’s long-term ambitions. This makes valuation of the company a difficult task.
For many investors, the bet is as much on Musk as it is on SpaceX. His track record at electric-vehicle company Tesla, and his ability to inspire retail traders, could generate strong demand for the shares—just as his reputation did for his previous ventures. Still, two of SpaceX’s three businesses are still spending money. Only its connectivity segment—which includes the Starlink satellite constellation—is profitable and is widely considered the company’s ‘cash cow’ (highest revenue source).
Moving beyond rockets and satellites, SpaceX is showing investors a vision of a future that includes ambitious projects like a data center in orbit. In this way, the company is preparing itself to take advantage of the rapid increase in spending on AI-related infrastructure. Earlier this year, SpaceX merged with Musk’s AI startup xAI. In this deal, the valuation of the rocket and satellite company was made at 1 trillion dollars and the valuation of the company making Grok chatbot was made at 250 billion dollars.
How were the quarterly results?
The company’s revenue increased to $4.69 billion in the three-month period ended March 31, from $4.07 billion a year earlier. Over the same period, loss per share widened to $1.27, compared to 18 cents per share last year. In 2025, SpaceX’s revenue is expected to increase to $18.67 billion, up from $14.02 billion a year earlier. But the company slipped from a profit of $791 million to a loss of $4.94 billion. Experts say that since a large part of SpaceX’s pitch to investors depends on Musk.
Therefore, some concerns related to corporate governance may force investors to think. Measures like the two-category share structure outlined in the IPO prospectus concentrate voting power in the hands of Musk and a small group of insiders. SpaceX aims to trade on Nasdaq under the ticker symbol “SPCX.” Reuters had earlier reported that the launch is expected to take place by June 12, after the company extended its IPO deadline. Goldman Sachs, Morgan Stanley, BofA Securities, Citigroup and JP Morgan are the joint book-running managers for the offering.
