Overview
Elon Musk's SpaceX announced that it priced its initial public offering at $135 per share, bringing in $75 billion from the sale of 555.56 million shares. The placement assigns the rocket and spacecraft manufacturer a $1.77 trillion market value based on 13.08 billion shares outstanding.
Market position and listing
With this valuation, SpaceX will be one of the largest companies listed in the United States when trading begins on the Nasdaq on Friday, ranking seventh among U.S.-listed companies at the opening of trade. The stated share count used to determine the $1.77 trillion figure could expand if underwriters choose to exercise their option to sell additional shares within the customary 30-day window following the offering.
Financial and operational notes
The pricing comes even though SpaceX reported a loss in the most recent year and posts revenue that is materially lower than the revenues of other mega-cap companies. The company says its space operations have accounted for more than four-fifths of the mass launched into orbit over the past three years. Its Starlink internet service, which connects customers across 164 countries, territories and other markets, currently provides the bulk of SpaceX's revenue.
Allocation and process
SpaceX set aside 30% of the shares for retail buyers. Notably, the offering price for Thursday was determined before the company and its bankers conducted the traditional roadshow that typically precedes an IPO and allows investors and underwriters to negotiate terms and gauge demand.
Relative comparisons
The $1.77 trillion valuation exceeds the market values of major U.S. companies including JPMorgan Chase, Berkshire Hathaway, Eli Lilly, Meta Platforms, and Tesla, based on the information provided in the offering announcement. The new IPO record surpasses the previous largest public offering - Saudi Aramco's December 2019 sale - which raised $25.6 billion at a $1.71 trillion valuation. When adjusted for inflation in the terms cited, that Aramco sale equated to $33.2 billion at a $2.21 trillion valuation.
Company mission and background
Founded in 2002, SpaceX states its mission is "to build the systems and technologies necessary to make life multiplanetary, to understand the true nature of the universe, and to extend the light of consciousness to the stars." The company highlights its dual role as a launch provider and as an operator of the Starlink internet network, with Starlink currently the primary revenue contributor.
Summary takeaway
SpaceX's IPO represents the largest U.S. offering on record by proceeds and establishes a market valuation that places the company among the nation’s largest listed firms. Key financial and operational details disclosed include a reported loss in the past year, reliance on Starlink for most revenue, and a pricing decision taken prior to a customary investor roadshow.