SpaceX Sets $135 IPO Price, Aims to Raise $75 Billion at $1.77 Trillion Valuation

SpaceX will price 555,555,555 class A common shares at $135 each on Thursday and begin trading the next day on the Nasdaq Composite Index under the ticker SPCX. 77 trillion. The Texas-based company is allocating up to 30 percent of the shares to retail investors, three times the typical 10 percent allocation in most IPOs.

The remaining 70 percent will go to large institutional money managers. Retail investors can request shares through Charles Schwab, E*TRADE by Morgan Stanley, Fidelity Investments, Robinhood, and SoFi. Charles Schwab requires a minimum liquid net worth of $100,000.

E*TRADE and Robinhood have no account minimum. Fidelity requires a brokerage account with at least $2,000. SoFi requires only an active investing account. 25 percent of SpaceX's total stock.

After the IPO, any investor can buy shares on the open market, and the stock may later be added to index-based exchange-traded funds. SpaceX said on its website that brokerage platforms will confirm eligibility when investors submit requests. Matthew Kennedy, senior market strategist at Renaissance Capital, said investors typically submit a request for a number of shares, receive confirmation the day before trading, and then receive an allocation the morning of the listing.

Jay Ritter, professor and director of the IPO Initiative at the University of Florida, analyzed more than 9,200 IPOs from 1980 to 2024. He found the average first-day return is about 19 percent. The average three-year market-adjusted return for investors who buy at the first-day closing price is negative 21 percent.

Kennedy said shares can be volatile in the days after an IPO and suggested some investors may prefer to wait. Morningstar stated in a research note that it believes SpaceX has been overvalued and that investors may find more attractive levels after the offering. Forge Global and Rainmaker Securities have stopped offering private secondary transactions in SpaceX shares.

Glen Anderson, CEO of Rainmaker Securities, said opportunities for new private transactions have become limited as market participants shift attention to the company's performance in public markets. SpaceX will remain primarily held by CEO Elon Musk, company employees, and private investors. The $75 billion raise exceeds the approximately $25 billion raised by Saudi Aramco in its 2019 IPO.

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