BY COMFORT OGBONNA
SpaceX priced its highly anticipated initial public offering at $135 per share on Thursday, officially completing the largest IPO ever recorded in the United States and one of the most valuable market debuts in global financial history. The rocket and spacecraft manufacturer raised approximately $75 billion through the sale of 555.56 million shares, giving the company a staggering valuation of $1.77 trillion.
The offering immediately places SpaceX among the world’s most valuable publicly traded firms, surpassing many established global corporations and setting a new benchmark for capital market listings. Based on its valuation, the company is expected to rank among the top seven largest U.S.-listed companies when trading begins on the Nasdaq exchange on Friday.
The IPO surpasses previous records, including Saudi Aramco’s 2019 listing, which raised $25.6 billion and valued the energy giant at $1.71 trillion. Even when adjusted for inflation, the SpaceX offering remains significantly larger, underscoring the scale of investor demand and the unprecedented structure of the deal.
The pricing concludes a months-long process that has drawn intense global attention due to both the size of the offering and the unconventional approach taken by Elon Musk. The company deliberately set its price at $135 per share before the traditional investor roadshow process had fully played out, deviating from standard Wall Street practices that typically rely on demand discovery through institutional bidding.
Market participants say the approach reflects Musk’s broader strategy of maintaining tight control over corporate decisions while expanding access to retail investors. SpaceX allocated around 30% of shares to retail buyers, a significantly higher proportion than most large IPOs, further emphasizing its effort to broaden ownership beyond institutional funds.
Despite the record valuation, questions remain about whether SpaceX’s financial fundamentals fully justify its market price. The company reportedly recorded losses last year, and its revenue scale still lags behind many of the largest publicly traded technology and financial firms. However, investors continue to price in long-term growth potential tied to its dominance in space launch services, satellite communications, and emerging artificial intelligence infrastructure.
The company’s business model spans multiple high-growth sectors, including space transportation, satellite broadband through its Starlink division, and artificial intelligence computing services. Starlink, in particular, accounts for a significant portion of current revenue and provides internet connectivity to millions of customers across more than 160 countries and territories.
SpaceX has also highlighted its broader ambitions in artificial intelligence and cloud computing, including partnerships with major technology firms. These initiatives are part of its strategy to integrate real-time data, satellite infrastructure, and AI capabilities into a unified ecosystem, which the company argues gives it a long-term competitive advantage.
Investor enthusiasm has been fueled in part by expectations of continued government contracts and expanding demand for satellite-based services. However, analysts caution that a substantial portion of SpaceX’s projected future value depends on uncertain revenue streams and long-term technological breakthroughs.
Some market experts have raised concerns about the complexity and risk profile of the offering. The pricing process itself has been described as highly unusual, with the company announcing its share price during standard trading hours rather than after market close, a move that diverges from traditional IPO conventions.
Despite these concerns, demand for the shares has remained strong, particularly among retail investors. Market strategists expect significant volatility in the early days of trading, as price discovery unfolds in real time following the company’s debut on public markets.
The IPO also strengthens Elon Musk’s control over the company, with reports indicating he will retain approximately 82% of voting power after the listing. This governance structure ensures that strategic decision-making remains largely centralized despite the broadening shareholder base.
The broader IPO market is also showing signs of recovery after a period of volatility, with analysts forecasting a surge in public listings over the coming year. Some projections suggest that total IPO proceeds could reach record levels by 2026, driven by high-profile listings in sectors such as artificial intelligence and advanced technology.
As trading begins, investors will be closely watching how the market absorbs the massive valuation and whether early price movements reflect sustained demand or short-term speculation. Analysts have noted that typical IPOs often experience initial price surges, but the scale and visibility of SpaceX’s listing make its performance particularly significant for broader market sentiment.
The coming weeks are expected to serve as a critical test of investor confidence in high-growth, high-valuation technology companies, as well as in Musk’s long-term vision of commercial space exploration and interplanetary expansion.
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