SpaceX began a new chapter on Friday as its shares prepared to start trading on the Nasdaq following what has become the largest initial public offering ever recorded, placing the company among the most valuable publicly traded firms in the world.
The aerospace and satellite company, founded by Elon Musk, priced its IPO at $135 per share on Thursday, raising approximately $75 billion through the sale of more than 555 million shares. The offering values the company at about $1.77 trillion, surpassing the previous IPO fundraising record set by Saudi Aramco in 2019.
The valuation places SpaceX among the largest publicly traded companies in the United States, ahead of several major corporations in banking, healthcare and technology. The company is expected to rank seventh among U.S.-listed firms by market value when trading begins.
Market analysts said investor demand was strong, particularly from retail investors, who were allocated a significant portion of the shares. SpaceX reserved 30% of the offering for individual investors, an unusually high percentage compared with most major stock market debuts.
The IPO process also departed from traditional Wall Street practices. SpaceX announced its final share price before the completion of the standard roadshow process that companies typically use to gauge investor demand and determine pricing. The company also revealed the offering price while U.S. markets were still open, a move rarely seen in large public offerings.
Despite its enormous valuation, some analysts have questioned whether the company’s financial performance justifies its market worth. SpaceX remains heavily dependent on revenue from its Starlink satellite internet business, which serves millions of customers across more than 160 countries and territories.
Founded in 2002, SpaceX has grown into a dominant force in the global space industry. The company says it has been responsible for more than four-fifths of the mass launched into orbit over the past three years. Its activities span rocket launches, satellite communications, space exploration and artificial intelligence technologies.
Last week, SpaceX announced a multi-year cloud services agreement with Google, securing additional computing capacity as competition in the AI sector intensifies.
Following the IPO, Musk is expected to retain approximately 82% of the company’s voting power, preserving strong control over corporate decisions.
Investors and analysts will closely watch the stock’s performance during its first days of trading. While many IPOs experience an early surge, market observers say the longer-term challenge will be whether SpaceX can justify its lofty valuation through continued growth in its space, satellite and technology businesses.
