SpaceX's IPO has seen a significant oversubscription as order books finalize before the pricing scheduled for Wednesday.

      SpaceX's IPO, valued at $75 billion with a share price of $135, has garnered significant oversubscription. Order books are set to close on Monday, with pricing anticipated on Wednesday and trading on Nasdaq commencing on Thursday. This offering would become the largest IPO ever, surpassing Saudi Aramco's $29.4 billion debut in 2019.

      The oversubscription indicates that investors are vying for more shares than the approximately 555.6 million available, suggesting a fully diluted valuation of around $1.8 trillion. SpaceX plans to trade under the ticker SPCX on both Nasdaq and Nasdaq Texas, the new venue in Dallas.

      The demand is fueled not only by the rocket sector but also by two important contracts mentioned in the S-1 filing. Google is set to pay SpaceX about $920 million monthly, or around $30 billion until 2029, for Starlink bandwidth and AI computing services. Meanwhile, Anthropic has pledged approximately $1.25 billion a month for access to AI infrastructure.

      These contracts alone could generate about $26 billion annually in recurring revenue, positioning SpaceX as an infrastructure utility with secured cash flows instead of merely a launch service reliant on individual mission bookings. These agreements resulted from SpaceX's merger in February with xAI, uniting Musk's AI company and the social media platform X under one corporate umbrella.

      SpaceX has indicated strong market interest, setting its share price at $135 before the roadshow commenced, a rare strategy that bypassed the typical negotiation process with institutional investors. This decision appears to have been advantageous as the set price held firm and demand surged.

      The path to this point has been swift. SpaceX submitted its S-1 in April, reporting $18.7 billion in projected revenue for 2025 alongside a net loss of $4.94 billion attributed to the xAI merger. After discussions with investors, the company lowered its valuation goal from over $2 trillion to $1.8 trillion in late May, officially beginning its marketing phase on June 4.

      The offering includes a 30% allocation for retail investors, significantly higher than the low single-digit percentages typical for deals of this magnitude, making the oversubscription particularly noteworthy. Retail investors have eagerly participated alongside institutional players, indicating the strong support Musk has cultivated across his businesses. A diverse investor base serves as a structural safeguard, as it lessens SpaceX's reliance on a few large funds that could demand governance changes.

      However, not everyone is on board. A Danish pension fund has excluded the offering due to governance concerns, citing Musk’s substantial 79% voting power through a dual-class share structure while holding around 42% of the equity. The concentration of authority in a founder managing multiple ventures, including a rocket company, an AI lab, a satellite network, a social media platform, and an electric car manufacturer, remains a primary reason some investors have opted out.

      Should it reach a $1.8 trillion valuation, SpaceX would surpass Amazon at its debut and only trail Apple, Nvidia, Microsoft, and Alphabet among publicly traded firms. If the share price remains constant on Wednesday and trading proceeds as planned on Thursday, it will signify not just the largest stock offering ever but also a judgment on the market's willingness to assign a value to a Musk-led conglomerate, which encompasses rockets, satellites, AI, and social media, at nearly a hundred times its annual revenue.