SpaceX's IPO priced at $135 a share, valuing the company at $1.77 trillion, a bet on future growth rather than today's profits. The June 11 offering sold 555.56 million new shares, raising about $75 billion and leaving 13.08 billion shares outstanding, Reuters reported. The company said proceeds will expand its satellite network and build AI computing capacity, and it set aside an unusually large retail tranche to broaden individual investor access. SpaceX filed a free writing prospectus with the Securities and Exchange Commission after bankers met on June 11, and the shares began trading on the Nasdaq on June 12. "The real test will be how the market digests the IPO over the next several weeks, not just one day," said Adam Sarhan, chief executive of 50 Park Investments.

Concerns about high revenue multiples capture why the valuation has divided markets.

The $1.77 trillion figure places SpaceX immediately among the largest US listed firms despite reporting a net loss last year and revenue that trails larger mega-caps, Reuters reported. Those numbers mean investors are paying a premium for future growth rather than current profits.

What investors bought

The deal was structured largely as an all primary sale, with proceeds earmarked to expand SpaceX's satellite network and to build AI computing capacity, Reuters said. The company told banks it intended to hold the offered price at $135 unless market conditions changed, a stance that helped anchor the transaction through pricing and into the first day of trading.

Retail investors were a conspicuous focus. SpaceX initially proposed allocating up to 30 percent of the offering to individual investors, an unusually large retail tranche that reflected Elon Musk's strategy to broaden ownership, Reuters reported. Market coverage and brokerage notes recorded that the allocation was trimmed in practice to the low 20 percent range because demand vastly outstripped supply.

Mastheads

Early secondary market activity showed heavy retail and institutional interest on the first trading day, with exchange data and market commentary noting strong bids above the IPO price. That mix of buyers helped the underwriting syndicate absorb the primary sale while leaving open the possibility of further supply soon.

Why the valuation worries some

Analysts split into two camps. Some signalled enthusiasm for SpaceX's long-term vision in satellites, AI compute and other ventures. Others warned the valuation reflects a premium for businesses that aren't yet mature, including ambitions in orbital AI infrastructure and Mars-related projects, Reuters said. Those cautionary voices point back to concerns about very high revenue multiples, which leave little margin for execution slips.

Underwriting and aftermarket mechanics add another layer of uncertainty. Underwriters have the customary option to sell additional shares within 30 days after the offering, Reuters reported. If exercised, that decision would increase the total proceeds and the public float, and could moderate near-term price pressure from a tight public float.

The process also broke with some Wall Street norms. Reuters noted the IPO fixed the price before the full bookbuilding roadshow, a tactic market participants linked to Elon Musk's leverage over investors. That sequence removed some of the conventional price discovery steps and left analysts debating whether the market simply accepted a premium or genuinely pushed the valuation higher on demand.

Adam Sarhan of 50 Park Investments described the pricing as balanced, saying "The pricing came in just about right, not too hot, not too cold." That read matters because how quickly the post-IPO supply and demand balance settles will determine whether early bids above the IPO price are durable support or a short-lived premium.

SpaceX communicated the final terms in a free writing prospectus filed with the Securities and Exchange Commission after its bankers met on June 11. The shares listed on the Nasdaq on June 12, putting the stock into public hands and opening the 30 day window for underwriting options.

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The next concrete date to watch is the 30-day post-offering window following the June 12 Nasdaq listing, when underwriters must decide whether to exercise their option to sell additional shares. Originally reported by Reuters.

This article was created with AI assistance.