SpaceX has announced a fixed price of $135 per share for its upcoming initial public offering (IPO), according to a filing with the Securities and Exchange Commission (SEC) dated Wednesday. The company plans to sell 555.6 million shares, aiming to raise $75 billion. Additionally, underwriters have the option to purchase an extra 83.33 million shares at the IPO price, potentially adding $11.2 billion to the total. Following the IPO, Elon Musk is expected to retain over 82% voting control of the company.
Goldman Sachs is serving as the lead banker for the offering, with Morgan Stanley, Bank of America, Citigroup, and JPMorgan Chase also involved. Unlike typical IPOs that provide a price range to gauge market demand, SpaceX has opted for a fixed price following preliminary meetings to assess interest.
At the proposed price, SpaceX would be valued at $1.77 trillion, making it the seventh-largest company in the U.S. by market capitalization, surpassing Tesla's valuation of approximately $1.6 trillion. The company plans to list on the Nasdaq under the ticker symbol SPCX on June 12.
In a related update, SpaceX's xAI unit purchased $269 million worth of Tesla megapacks in April, with Tesla previously reporting $430 million in sales of its backup batteries to xAI last year. Musk merged SpaceX with xAI in February, valuing the combined entity at $1.25 trillion. The filing indicates a history of collaboration between SpaceX and Tesla through various agreements.
The IPO is expected to be the largest in history, exceeding Alibaba's previous record. Concurrently, AI companies Anthropic and OpenAI are also preparing for their public offerings, with Anthropic having filed its IPO prospectus earlier this week and OpenAI expected to follow soon. SpaceX's prospectus revealed significant financial losses and highlighted Musk's substantial ownership stake. The company plans to reserve up to 5% of its IPO stock for certain employees and other individuals as part of a direct share program. There are ongoing discussions about the potential integration of SpaceX and Tesla, with reports of internal conversations among employees regarding this possibility.
