SpaceX sets the IPO price at $135 per share, resulting in a valuation of $1.75 trillion and achieving a record listing.

      Companies typically finalize their IPO price at the end of the process. They establish a price range, conduct a roadshow, gauge institutional interest, and allow demand to dictate the final share price. However, SpaceX is taking a different approach.

      The company intends to set its IPO price at $135 per share before even starting the roadshow, aiming for a record $75 billion raise, according to a source familiar with the situation. This method is notable due to its unconventional nature, as setting a price prior to bookbuilding eliminates the usual process where investors negotiate the valuation downward. It signals to the market that the established terms are non-negotiable.

      With a price of $135 per share for approximately 555.6 million shares, the raise would become the largest ever and suggests a valuation of around $1.75 trillion. SpaceX plans to go public on the Nasdaq under the ticker symbol SPCX, with trading anticipated to start on June 12.

      This is not SpaceX's first attempt to enter the public markets, and readers of TNW have closely followed its progress. Earlier this year, the company filed its S-1, paving the way for this record-breaking listing, and the prospectus indicated that Musk and other insiders would maintain significant voting control through a dual-class share structure. Establishing the fixed price represents a further stance: having initiated the process on its terms, SpaceX now aims to set the price on those same terms.

      The rationale behind the $1.75 trillion valuation is that SpaceX has evolved beyond merely being a rocket company. The acquisition of xAI in February integrated Musk’s AI startup with its launch and satellite operations, positioning the combined entity as an AI infrastructure player as well as a space company.

      Funding from the IPO is partly allocated for enhancing AI computing capabilities alongside the Starlink satellite network. When the roadshow occurs, it will promote two narratives simultaneously.

      The retail focus adds to the spectacle. SpaceX is reportedly reserving up to 30% of the offering for individual investors, a stark contrast to the low single-digit allocations typical for deals of this magnitude.

      This approach serves both as a nod to its dedicated retail fanbase and as a safeguard: a fixed price ahead of bookbuilding relies on widespread demand rather than just a select few institutions determining the final price.

      However, not everyone agrees that the price is grounded. A Danish pension fund has already marked the listing as off-limits due to governance concerns, highlighting the concentration of voting control and a valuation it perceives as inflated.

      Such criticisms are central to the deal. Investors buying SPCX shares will have limited influence in a company controlled by a founder whose interests span rockets, satellites, AI, social media, and electric vehicles.

      The argument for the valuation remains consistent with Musk's previous endeavors: that exceptional companies can command flexibility in the face of competition. SpaceX launches more mass into orbit than all other operators combined, Starlink has amassed a multi-million subscriber base, and the partnership with xAI adds an appealing AI element at a time when markets are keen on such ventures.

      Conversely, setting a price before the roadshow presumes a level of demand that the roadshows are designed to assess. If the book fills, SpaceX will have redefined the pricing of mega-IPOs. However, if it doesn’t, there will be no price range to fall back on.