Space Exploration Technologies Corp (NASDAQ: SPCX), AKA SpaceX, has raised US$75 billion in its initial public offering (IPO).
SpaceX describes itself as a company that’s building integrated hardware and software infrastructure across space, connectivity and AI. It designs, manufactures, launches and operates products that includes rockets, spacecraft and Starlink.
Huge initial public offering (IPO)
The amount raised in this IPO is the most raised by any business, more than Aramco, Alibaba, Softbank or Visa.
It has priced the IPO at US$135 per share, for 555,555,555 SpaceX shares. In other words, it raised US$75 billion from investors.
The shares are expected to begin trading on the Nasdaq Global Select Market and Nasdaq Texas on 12 June 2026 under the ticker symbol SPCX. The offering is expected to close on 15 June 2026, subject to customary closing conditions.
SpaceX also said that it has granted the underwriters a 30-day option to purchase up to an additional 83,333,333 Space Exploration Technologies Corp shares.
A number of financial outfits have been involved in getting this IPO to this stage, including Goldman Sachs, Morgan Stanley, Bank of America, JPMorgan, Barclays, Deutsche Bank, RBC, UBS and Wells Fargo.
Retail investors get a smaller allocation
According to reporting by CNBC, SpaceX is allocating a less-than-expected portion of its huge IPO to retail investors, according to an unnamed source.
While initial expectations were that around 30% of the raising would go to retail investors, now that allocation is going to be in the low 20% range for retail buyers, including international individual investors, online brokerages and private-bank clients.
This reduced allocation to retail buyers suggests that more is going towards institutional investors.
What does this mean for SpaceX’s share price valuation?
With the price that the company has achieved, it could achieve an overall valuation of US$1.8 trillion. That would instantly make it one of the biggest businesses in the world.
Is it a good buy today? It’s certainly full of exciting businesses such as Starlink and the rockets & spacecraft segment of SpaceX. Space is a frontier with a lot of future potential. I’m less excited about the cash-burning xAI side of the business.
But, how profitable will it be? What’s the right valuation for the leader of the space world? These are important questions for investors to consider.
It’s not the sort of business I’d want to own on a medium-term view.
It could do extremely well over the ultra-long-term (if it can deliver good profits for its space efforts), and could soar on global investor demand in the short-term. But, I expect there could be quite a bit of volatility over the coming months and years.
For me, there are ASX growth shares that offer a compelling future, without the huge profit growth assumptions.
