Tag: IPO

SpaceX yesterday announced that it has raised an additional $10 billion from its initial public offering (IPO) because its original private investors have decided to exercise their option to purchase stock, bringing the total raised to $85.7 billion.

Space Exploration Technologies Corp. (“SpaceX”) today announced the closing of its initial public offering of an aggregate 638,888,888 shares of its Class A common stock, including the full exercise by the underwriters of their overallotment option to purchase an additional 83,333,333 shares of Class A common stock from SpaceX. The issuance of all shares closed on June 15, 2026, bringing the gross proceeds from the initial public offering to SpaceX to approximately $85.7 billion. The shares of Class A common stock began trading on the Nasdaq Global Select Market and Nasdaq Texas on June 12, 2026, under the ticker symbol “SPCX.”

Goldman Sachs & Co. LLC, Morgan Stanley, BofA Securities, Citigroup, J.P. Morgan, Barclays, Deutsche Bank Securities, RBC Capital Markets, UBS Investment Bank, and Wells Fargo Securities acted as book-running managers for the offering. Cantor, Needham & Company, Raymond James, Societe Generale, Stifel, William Blair, BTG Pactual, ING, Macquarie Capital (USA) Inc., Mirae Asset Securities, Mizuho, and Santander acted as co-managers.

The actual cash raised for the company is less than $85.7 billion, as the various financial institutions listed in the second paragraph above get a cut for managing the IPO, which is only 0.75%, the lowest percentage for an IPO since 2010. Thus, SpaceX raised more than $85 billion for its own use.

As I noted a few days ago, this nest egg of cash is only part of the company’s resources. It presently earns about $31 billion in revenue yearly from Starlink and its computer hardware divisions. That number is also certain to rise in the coming years.

Meanwhile, subsequent trading of the company’s stock on Wall Street remains brisk, with the price continuing to rise. It is presently trading at over $200 per share. Though this higher price doesn’t mean more money to SpaceX (as it only represents resales of the stock), it does tell us that the market considers the stock more valuable than its initial price. Thus, the predictions of many financial experts that the IPO was over-valued are so far turning out to be wrong.

As SpaceX and the Wall Street gear up for the June 12, 2026 initial public offering (IPO) of SpaceX stock, there have been a number of articles published in the past week expressing skepticism about it, mostly aimed at trying to predict what will happen in order to advise potential buyers.

Much of this is guesswork, but the people speaking are people who do this for a living, so it might be worthwhile to take a look at what what they have to say. Below are a few examples.

First, the New Yorker published a detailed article questioning the overall $1.75 trillion valuation of SpaceX listed in its IPO. It doubts the reality of the company’s AI division, its plan to launch a constellation of data satellites, and notes that Starlink and the launch divisions don’t make up the difference. Overall, its analysis concludes the valuation is over-rated, and should be approached with caution.

Business Insider also posted an article expressing reservations about the IPO’s unusual requirement that 30% of all shares be reserved for the retail market, made up of small individual buyers.

Here’s how it’s instead been interpreted by the retail-investor commentariat: They’re capitalizing on trader excitement and relying on it to supplement demand from institutions. The heavy allocation is essentially setting up retail to hold the bag after longer-term shareholders take profits.

I myself have had this analysis confirmed by one source, that the major big stock buyers are themselves planning to hold back their purchases for at least the first few months, believing the stock price will be pumped up initially by this flood of small enthusiastic buyers. They will wait for it to drop — as they expect — and then buy, taking their profits then.

Meanwhile, the Wall Street Journal posted two articles with contradictory conclusions:

• Morgan Stanley Sees SpaceX’s Revenue Reaching $3.4 Trillion in 2040
• What the ‘Dean of Valuation’ Thinks Elon Musk’s SpaceX Is Really Worth [$1.3T]

The first article is very optimistic. The second is less so, approaching the situation more carefully.

For my readers who wish to invest, I strongly suggest you read them all, and consider them all. Investment here might not be as great as you think.

For SpaceX and the future of space exploration however the situation is excellent, whether or not buyers are going to make money on its IPO. The company is certain to bring in more than $75 billion, maybe as much as $86 billion, giving it the capital to do everything it wants in the next few years. It will build Starship. It will send it to both the Moon and Mars. It will have the resources to fuel Elon Musk’s fundamental dream, building a major human civilization throughout the solar system.

In this alone the IPO will be historic, as it lays the groundwork for the human colonization of space. History begins now, and it does so under the aegis of capitalism and freedom.

SpaceX yesterday filed the full prospectus with the Securities and Exchange Commission (SEC) for its planned initial public offering (IPO) of stock, revealing a plan to sell 555.6K shares at $135 per share, resulting in a total cash acquisition of just over $75 billion. Additionally, the company’s earlier investors will have separate options to buy other shares, raising about $11 billion more, for a total of $86 billion in capital raised.

The stock offering would set SpaceX’s value at about $1.77 trillion, and would make Elon Musk the world’s first trillionaire. This would also be the largest IPO in history. The full prospectus at the link above has a lot of details, which this CNN article distills nicely:

SpaceX plans to sell 555.6 million shares at an initial price of $135 a share, the company said in a filing with the Securities and Exchange Commission. The decision to dictate one price target, as opposed to offering a range, is a unique move that reflects the hot IPO market around the AI craze and Musk’s own tendency for mega-scale goals.

Musk, who currently owns half of SpaceX, would still control nearly half of the company’s total shares after the offering. However, some of those are special shares with greater voting power, and Musk will control 82.4% of the voting power after the IPO, according to the filing.

The date of this IPO, when stocks will go on sale, is presently set for June 12, 2026. The stock will be traded on Nasdaq, under the label SPCX.

In addition to this $86 billion, SpaceX already earns about $12 billion per year from its more than 10 million Starlink subscribers, and has previously raised more then $12 billion from those initial private investors. All told, the company will have more than $110 billion in cash on hand after this IPO. That is more than four times NASA’s annual budget.

As I have said repeatedly in the past two years, SpaceX is the real American space program. NASA is begin carried along by it.

One detail of interest revealed in some viewgraphs that SpaceX is showing to potential investors is its intention to begin launching commercial payloads on Starship before the end of this year. In other words, expect much more frequent flights in the coming months, moving quickly to orbital tests, placing operational version 3 Starlink satellites in orbit as well as testing refueling in orbit involving two week missions and two Starships.

As SpaceX and numerous banks get ready for the company’s initial public offering of stock (IPO), several tidbits about the structure of the stock and the company post-IPO have been dribbling out.

First, prior to the sale the company split its stock, converting each existing private share from one to five. It appears this action served to protect the value of that previously issued stock, much of which had either been issued to employees or purchased by major investors, including Musk. This split maintains their control over the company.

It also lowered the expected price of the stock in the IPO, ranging from present estimates of $100 to $160.

The absolute level of a stock doesn’t typically matter all that much, but a lower price might help smaller retail investors build positions. Retail shareholders are expected to be important for SpaceX. They hold a lot of Tesla shares.

Second, these preliminary stock arrangements appear designed to guarantee Elon Musk will remain in control of the company, even after it goes public. His shares, numbering 260 million (which could be more than a billion if prior to the stock split), will be given supervoting powers, ensuring his mastery of the company.

When the IPO happens remains uncertain. The Wall Street Journal says June 12, 2026, while Bloomberg says it could be as soon as May 20th.

Either way, it will be a major financial event, and should shake up the entire global launch industry in ways that cannot be predicted. It will certainly give SpaceX the funds it needs to develop Starship/Superheavy fully, making access to space cheap and affordable. It will also allow the company to pursue its goals in space, establishing data centers constellations in orbit and on the Moon (for profit) as well as colonies on Mars.

Whether the IPO will suck all the investment capital out of the rest of the industry remains uncertain, though some are claiming this. In reality, it could just as easily end up doing the opposite, as the market is never zero-sum game. Success in one place usually ends up fueling success all around.

Either way, this IPO is going to change things for sure. It will establish without question what I have been saying for more than a year, that the real American space program is being run by SpaceX, and that NASA’s Artemis program is merely a long term ineffective sideshow that is simply aiding the company achieve its goals.