SpaceX has finalized its initial public offering (IPO) price at $135 per share, positioning the company for the largest stock market debut in history. The company, led by Elon Musk and also owner of the X social media network, will begin trading on the Nasdaq exchange on Friday with a valuation of $1.77 trillion, making it three times larger than the previous record-holding IPO from Facebook in 2012 [1]. This IPO marks a significant shift, as SpaceX transitions from being accessible primarily to venture capital firms, institutional investors, and a select group of private shareholders, to allowing ordinary investors to participate in one of the most closely watched companies globally [1].
Dan Hanson, senior portfolio manager at Neuberger Berman, whose fund invested in SpaceX while it was private, emphasized that investors should view SpaceX not just as a rocket company, but as a conglomerate encompassing its launch business, the Starlink satellite internet network, and artificial intelligence initiatives. Hanson stated, “This team is just getting started. There’s a significant opportunity for them to create value as they execute” [1].
However, there are concerns regarding the company’s valuation. Morningstar analysts wrote last week that they believe SpaceX is “overvalued” given its financials, noting that the company has yet to generate a profit and produced approximately $19 billion in revenue last year. While SpaceX initially aimed for a valuation exceeding $2 trillion, this target was trimmed to about $1.7 trillion. Morningstar values SpaceX at $780 billion, significantly below the IPO valuation [1].
The IPO is also notable for its mechanics: SpaceX is expected to have a small initial float, with shares boosted by widespread investment bank support and strong investor appetite for AI infrastructure. The company is on an unprecedented path to inclusion in the Nasdaq 100 Index just 15 trading days after the IPO. Despite skepticism about the valuation, Morningstar analysts expect SpaceX’s share price to remain buoyant in the short term due to these factors [1].
CONCLUSION
SpaceX’s IPO sets a new record for market debuts, reflecting immense investor interest in the company’s space, satellite, and AI ambitions. While some analysts warn of overvaluation and note the company’s lack of profitability, the IPO is expected to attract significant attention and could drive strong initial trading momentum. The market will closely watch how SpaceX performs as it transitions to public ownership.