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    Home » Sections » Investment » The biggest IPO ever is also one of the riskiest

    The biggest IPO ever is also one of the riskiest

    Elon Musk's SpaceX wants a $1.75-trillion valuation despite posting a near-$5-billion loss last year.
    By Agency Staff4 June 2026
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    The biggest IPO ever is also one of the riskiest - SpaceX
    Starship lifts off from the SpaceX launch complex in Starbase, Texas on 22 May 2026. Steve Nesius/Reuters

    SpaceX has publicly set a $135 price for shares in its initial public offering, upending the longstanding Wall Street price-discovery apparatus and underscoring Elon Musk’s determination to raise record sums his way.

    The company’s decision to publish a price a week ahead of its landmark offering has few if any precedents among major US IPOs, and reflects Musk’s standing in the financial world as an adventurer with a golden touch — even as the capital raise will value SpaceX at very lofty multiples.

    The company is aiming to raise $75-billion, the most ever for an IPO, in a deal that would value it at $1.75-trillion, immediately placing it among the top 10 most valuable US-listed firms.

    The company kicks off an investor roadshow on Thursday, with pricing expected on 11 June

    The company kicks off an investor roadshow on Thursday, with pricing expected on 11 June; trading in shares will begin on the Nasdaq the next day.

    Musk has rewritten the IPO playbook for SpaceX in many other ways, from planning to give retail investors a larger role in allocations to pushing for early index inclusion, and structuring governance to preserve strong founder control.

    “Nothing about this IPO is normal in any course or sense, but then again this is the largest IPO in history so maybe that is not surprising,” said an investor who is planning on buying into the IPO.

    Rush

    On Wall Street, there has been a rush to get a piece of the deal, given Musk’s reputation and his control of an offering that stands to generate millions of dollars in fees — despite concern about the sky-high valuations that SpaceX will garner.

    The prospective investor said there has been a sense that major firms are “posturing” by saying “we put the money in early” — a position that both reflects and reaffirms Musk’s leverage over investors.

    SpaceX lacks a clear public market benchmark, given the paucity of public space companies and the company’s interests across aerospace, telecoms and defence. The company posted a net loss of $4.94-billion in 2025, even as revenue rose 33% to $18.67-billion.

    Read: SpaceX wants to fly a rocket every 53 minutes

    “On the face of it, a ~90x+ revenue multiple is high by any standard,” said Tim Hatt, head of research and consulting at GSMA Intelligence, the research arm of global telecoms industry body GSMA. “But then again, SpaceX is not traditional in any way and there are no true public comparables.”

    The roadshow is where companies and their bankers typically sound out investors in order to arrive at a price range for their share sale. The process emphasises bankers’ relationships with potential investors and their understanding of the market for the coming offering.

    Elon Musk
    Elon Musk. Mike Blake/Reuters

    After a series of testing-the-waters meetings with investors ahead of the roadshow, SpaceX indicated it was looking for a valuation of about $1.75-trillion, while some investors sought $1.5-trillion or less.

    An institutional investor who banks with Goldman Sachs said he tried to buy shares in the IPO, but was told SpaceX IPO allotments are a “David Solomon-level decision”, referring to the firm’s CEO. The investor’s banker suggested he buy after the company goes public.

    Other aspects of the SpaceX offering stand out. Major international banks including Mizuho, Deutsche Bank, UBS and Barclays have been urged to focus on lining up wealthy individual buyers in their home countries. In the past, little attention was paid to individual investors, as bankers sought out feedback from large asset managers such as Fidelity Investments and powerful hedge funds such as Citadel.

    Why would you own it? It’s because of the cachet that Elon Musk brings. I’m interested in it as a sideshow

    The company is considering allocating as much as 30% of the offering to individual investors, an unusually large retail tranche aimed at tapping into Musk’s cult-like following that would also broaden ownership of the company.

    “Why would you own it? It’s because of the cachet that Elon Musk brings,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut, US, who said he isn’t buying the shares. “I’m interested in it as a sideshow.”  — Echo Wang, Milana Vinn, Akash Sriram, Caroline Valetkevitch and Gianluca Lo Nostro, (c) 2026 Reuters

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