Inside SpaceX's $75bn IPO: AI, Mars & Musk's iron grip

Key topics:SpaceX targets record $75bn IPO at $1.77tn valuationMusk retains control as critics raise governance concernsAI, Starlink and Mars plans drive ambitious growth strategy.By Bailey Lipschultz.SpaceX is seeking to raise $75 billion in an initial public offering that would be the biggest of all time, as Elon Musk’s rocket, satellite and artificial intelligence company targets a historic debut that could clear a path for more mega-listings.The Starbase, Texas-based company plans to market about 555.6 million shares for $135 each, according to its filing Wednesday with the US Securities and Exchange Commission. At that price, SpaceX would have a market value of almost $1.77 trillion based on the outstanding shares in the filing.Musk’s decision to offer shares at a fixed price ahead of the order-taking is almost unheard of for sizable US IPOs, unlike in Europe and Asia. Most companies typically announce a price range before marketing shares during investor presentations, with only a handful of tiny firms skipping the opportunity to gauge demand, and potentially build excitement by pricing at the top or above..Read more:.SpaceX heralds a new era of mega IPOs, but history warns investors to be cautious: Jonathan Levin .At $75 billion, SpaceX’s IPO would easily top Aramco’s record $29.4 billion listing in 2019, and would open the door to debuts for OpenAI and Anthropic PBC. The firms are expected to target double-digit billion-dollar IPOs of their own if they both go ahead with plans to list as soon as this year, catching investors’ seemingly unquenchable thirst for AI themes.Accounting for employee stock options and restricted stock units, the company would have a fully diluted value of at least $1.8 trillion. That compares with a valuation of $1.25 trillion the company, known formally as Space Exploration Technologies Corp., reached in February when it acquired Musk’s AI business xAI, Bloomberg News reported.At $1.8 trillion, SpaceX would be bigger than all but six of the companies in the S&P 500 Index, and larger than Musk’s own Tesla Inc.Lofty GoalsThe share sale is set for June 11 and SpaceX is expected to begin trading the following day, according to terms of the deal seen by Bloomberg News. The filing tees the company up to begin the formal marketing process for the IPO on Thursday where Musk and executives officially take their pitch to investors, reeling off SpaceX’s grand plans not only for so-called orbital AI compute at scale but building out its direct-to-cell wireless business, ramping up AI semiconductor production with Tesla, and eventually, building bases on the Moon and a colony on Mars..Read more:.Can the stockmarket swallow Anthropic, SpaceX and OpenAI?.The challenge remains squaring SpaceX’s lofty goals with its recent history. The company had a net loss of $4.94 billion last year on $18.7 billion in revenue, versus net income of $791 million on $14 billion of revenue in 2024, according to the filing.The filing shows SpaceX signed a contract with Anthropic to provide AI compute for $1.25 billion per month, potentially offsetting the AI business’ heavy cash needs. Both firms can terminate the agreement on 90 days notice, and Musk said on X on May 28 that SpaceX hasn’t committed to leasing the compute for years, though it’s “possible”.Musk, the world’s richest person according to the Bloomberg Billionaires Index, is expected to keep tight control over the company. He’s set to have 84.4% voting power following the IPO, versus 85% currently, through Class B shares that have 10 votes each versus one apiece for Class A stock. Musk’s 93.6% of the Class B shares gives him the ability to elect 51% of the board and decide on removing himself from leadership positions, effectively preventing his being fired against his will.Critics of the IPO oppose Musk having near-unlimited control over the company, and provisions that would under Texas law require certain disputes to be handled in the state’s business court or arbitration. In a May 26 statement, Alliance to Protect Shareholder Value, a coalition representing several nonprofit organizations, called the company’s governance policies “a serious attempt to decimate protections for shareholders in novel and reckless ways while trying to give near-total executive authority to SpaceX’s leadership.”A spokesperson for SpaceX didn’t immediately respond to a request for comment on criticism of Musk’s control.Almost TrillionaireAt the offering price Musk’s net worth would settle at roughly $988 billion, according to calculations by the Bloomberg Billionaires Index, just shy of making him the first trillionaire. Still, given shares can be sold at a higher price — and IPOs typically gain in their first day — he could hit the mark late next week when shares are expected to be listed.Valor Equity Partners is set to remain the second-largest disclosed stakeholder in economic terms, with 6.7% of the Class A shares, down from 7.3% before the listing. Antonio Gracias, the founder of Valor and a longtime Musk ally, is a board member and has backed the rocket company for more than a decade.Approximately 7.8 billion shares, including all of Musk’s holdings, are subject to lockups extending beyond the usual six months after the IPO, according to the filing. Musk’s entire stake is locked up for 366 days after the IPO, the filing shows, with none of his 6.4 billion shares eligible for early release.Other shareholders are subject to a staggered release schedule rather than a single lockup expiration date. As many as 911.5 million shares will become eligible for sale as soon as the second full trading day after the company’s first earnings report, with additional releases tied to specific dates and future earnings reports, and in one case a trigger requiring shares to trade at least 30% above the IPO price.Musk’s company pioneered landing reusable rockets back on Earth after launch and built its Starlink satellite internet arm into SpaceX’s largest revenue-generating unit. Now SpaceX is pitching public market investors on a $28.5 trillion addressable market, most of which is focused on an AI infrastructure opportunity the company aims to conquer by initiatives such as putting data centers in space — a technology that doesn’t yet exist.SpaceX plans to use the proceeds for purposes including funding the expansion of its AI, rocket launch and satellite infrastructure, the filing shows. The company is required to use proceeds of certain debt financings and this IPO to repay within six months at least some of a $20 billion bridge loan, according to the filing. Much of the loan was used to take out high-interest junk debt for Musk’s social media and AI companies.The filing revealed details about how SpaceX plans to pay off debt associated with its nearly $20 billion purchase of radio frequencies from EchoStar Corp. in 2025, a deal that will enable SpaceX to expand its ability to connect Starlink satellites to smartphones on Earth. Under the agreement, SpaceX is expected to pay $1.2 billion in 2026 and $828 million in 2027 if the deal closes by Nov. 30, 2027..Read more:. SpaceX at $1.75tn: Musk’s Wall Street moonshot — or science-fiction risk for investors? | FT Unhedged.Goldman Sachs Group Inc., Morgan Stanley, Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. are leading the deal, with 18 other banks participating. The company expects to make its debut on Nasdaq and Nasdaq Texas under the symbol SPCX..© 2026 Bloomberg L.P..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox every morning on weekdays. Register here.Support South Africa's bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.

Inside SpaceX's $75bn IPO: AI, Mars & Musk's iron grip

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