SpaceX Prices IPO at $135 Per Share, Marking Largest IPO in U.S. History

Elon Musk's Space Exploration Technologies Corp. (SpaceX) today priced its Initial Public Offering (IPO) at $135 per share, setting a record for the largest IPO in U.S. history and placing the rocket and spacecraft manufacturer among the world's most valuable companies.

According to Reuters, the IPO raised $75 billion through the sale of 555.56 million shares, marking the highest amount ever raised in an IPO. This values the company, which spans space launch, satellite communications, and artificial intelligence (AI) businesses, at $1.77 trillion.

This pricing concludes months of planning for the SpaceX listing and is seen as one of Musk's most ambitious business ventures to date. Investor enthusiasm has been high, despite some analysts questioning the justification for such a steep valuation.

SpaceX stock will begin trading on the Nasdaq exchange tomorrow. By market capitalization, SpaceX will become the seventh-largest public company in the U.S., despite still being unprofitable last year and having revenue far below other tech giants.

With a $1.77 trillion valuation, SpaceX's market cap has already surpassed major corporations like JPMorgan Chase, Berkshire Hathaway, and Eli Lilly, and is also higher than Meta Platforms and Musk's other public company, Tesla.

Adam Sarhan, CEO of New York investment firm 50 Park Investments, said, "The real test will be how the market digests this IPO in the coming weeks, not its performance on day one... The pricing is more or less just right, not too hot and not too cold. It's clear that retail investors are actively buying in, and they are a significant force at this stage. After the first day of trading, we will need to see if the momentum can be sustained."

SpaceX currently has about 13.08 billion shares outstanding, resulting in a valuation of $1.77 trillion. The valuation could increase further if underwriters exercise their option for additional shares, a decision they typically have 30 days to make after the listing.

Notably, SpaceX announced its IPO price before the U.S. stock market closed. Companies usually announce pricing after the close to prevent market news from affecting the offering's outcome.

Market participants widely expect the U.S. IPO market to recover significantly this year. Goldman Sachs predicts that total IPO proceeds could expand to $160 billion in 2026, a several-fold increase from the previous year and a new record. Besides SpaceX, AI companies like OpenAI and Anthropic are also considered hot candidates for listing.

Matt Kennedy, a senior strategist at IPO research firm Renaissance Capital, noted, "Most IPOs see a first-day pop of around 10% to 15%. This deal has so much buzz that a gain of less than 10% might disappoint the market, but a gain of over 50% would mean the deal was driven entirely by market frenzy."