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SpaceX Sets $135 Share Price for Record $1.77 Trillion IPO
🇴🇲 Oman /Economy & Trade

SpaceX Sets $135 Share Price for Record $1.77 Trillion IPO

From Times of Oman · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • SpaceX has set its IPO price at $135 per share, valuing the company at $1.77 trillion and potentially raising $74.4 billion.
  • This valuation surpasses Saudi Aramco's 2019 IPO, making it the largest in history and potentially boosting Elon Musk's wealth significantly.
  • The IPO is seen as a bellwether for other major tech and AI offerings, with SpaceX planning to trade on Nasdaq under the ticker SPCX.

Elon Musk's SpaceX has priced its initial public offering at $135 a share, a move that positions the rocket and artificial intelligence company for the largest IPO in history. The offering values the company at a staggering $1.77 trillion, with plans to raise $74.4 billion, significantly exceeding the previous record set by Saudi Aramco in 2019.

Most companies that go public set a preliminary price range for their stock offering before settling on a final number in case investor demand for their shares changes. But Mr. Musk and SpaceX sidestepped that and simply declared one price for investors. SpaceX could still change that price but is not expected to do so.

— The New York TimesThe news report described SpaceX's approach to setting its IPO price.

This valuation marks a substantial increase of over 40 percent from SpaceX's self-assessed value of $1.25 trillion in February. The company's decision to declare a single price, rather than a preliminary range, signals strong confidence, though adjustments are still possible. SpaceX is expected to begin trading on the Nasdaq next week under the ticker symbol SPCX.

More than every U.S. I.P.O. combined in the last two years.

— Matthew KennedyMatthew Kennedy, a senior IPO market strategist at Renaissance Capital, commented on the scale of the SpaceX offering.

The sheer scale of the offering is unprecedented, with reports noting it could raise more than all U.S. IPOs combined over the past two years. This event is being closely watched as a key indicator for other major technology and artificial intelligence companies, such as Anthropic and OpenAI, which also boast valuations approaching $1 trillion.

The records are broken more than once.

— Nicolas OwensNicolas Owens, an equity researcher with Morningstar, commented on the significance of the IPO.

For Elon Musk, who holds a 50 percent stake, this IPO could be transformative. His holdings are valued at over $752 billion, and a surge in early trading could make him the world's first trillionaire. While regulatory filings indicate some shares may be restricted until operational milestones are met, Musk's control over 85 percent of SpaceX's shareholder votes through super-voting shares solidifies his influence. The company reported a significant loss of over $4.9 billion last year, attributed to increased AI spending, despite a 33 percent rise in revenue to $18.7 billion. The capital raised is earmarked for ambitious projects including orbital data centers, a lunar factory, and Mars expeditions.

A trillion-dollar market capitalization for a company going public used to be unheard-of. Now it seems normal.

— Nicolas OwensNicolas Owens, an equity researcher with Morningstar, reflected on the changing landscape of IPOs.
DistantNews Editorial

Originally published by Times of Oman in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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