SpaceX Eyes Record IPO at $1.75 Trillion Valuation With All-Primary Share Sale

SpaceX, Elon Musk’s rocket and satellite company, is preparing what could be the largest initial public offering ever through an all-primary share sale.

Reuters reported on June 2, citing people familiar with the matter, that SpaceX is planning a listing made up entirely of newly issued shares, with no stock being sold by existing investors. That would send all IPO proceeds to the company and prevent current shareholders from selling immediately after the listing. Existing investors would only be able to sell shares after the first quarterly earnings release, through a phased expiration of lockup restrictions.

In early bookbuilding, SpaceX told investors it plans to raise at least $75 billion in the base offering. The greenshoe option, which allows underwriters to sell additional shares if demand exceeds expectations, was set at 15%. Large IPOs typically include secondary share sales by early investors. SpaceX instead is using the same structure Rivian Automotive Inc. adopted in 2021, when the electric-vehicle maker went public without share sales by Amazon.com Inc. or Ford Motor Co.

The proposed listing also includes unusual terms that distinguish it from a traditional IPO, including early inclusion in the Nasdaq 100 Index and provisions that would effectively give Musk control of the board.

It is the first time SpaceX has formally presented banks with a specific fundraising target and valuation goal following investor meetings. Reuters reported that the company is considering a preliminary valuation of about $1.75 trillion. SpaceX’s IPO roadshow is set to begin on June 4.