Elon Musk’s SpaceX prices record-breaking $75 billion IPO at $135 a share

Elon Musk’s rocket and spacecraft manufacturer, SpaceX, has made history -ever U. S. initial public offering at $135 per share, instantly catapulting it into the rank of the world’s most valuable companies. The monumental offering raised a record $75 billion from the sale of 555.56 million shares, valuing the space, satellite, and AI provider at an unprecedented $1.77 trillion for an initial offering. This pricing culminates months of effort, realizing one of Musk's most ambitious projects, even as it challenged several financial traditions. The move has prompted some analysts to question whether its lofty valuation is truly justified. Despite reporting losses last year and its revenue being significantly outpaced -cap firms, SpaceX is set to rank seventh among U. S.-listed companies when its shares commence trading on the Nasdaq on Friday. The company’s valuation now surpasses that of diverse giants such as JPMorgan Chase, Berkshire Hathaway, and Eli Lilly, as well as tech behemoths like Meta Platforms and Musk’s own Tesla. Adam Sarhan, chief executive of 50 Park Investments in New York, commented on the market’s likely reaction, stating, "The real test will be how the market digests the IPO over the next several weeks, not just one day. The pricing came in just about right - not too hot, not too cold. Clearly retail investors are buying and, at this stage, they are a big component of this. We need to see follow-through after the first day of trading." The communication of the IPO price itself deviated from standard practice. SpaceX announced the price just after 3 p. m. S. markets were still open, via a "free-writing prospectus" filed with the Securities and Exchange Commission, followed by a press release half an hour later. Typically, such announcements occur after the 4 p. m. market close to mitigate the impact of macroeconomic or news events on share sales. (Getty) This unconventional timing is the latest example of Musk orchestrating a major Wall Street debut on his own terms. SpaceX allocated an unusually large 30 percent of shares to retail buyers and determined the offering price before the traditional roadshow, which bankers and investors typically use to negotiate IPO terms. Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey, noted, "The SpaceX pricing is really in uncharted territory. I've never seen the price announced instead of the normal process of price discovery based on orders. There's such an emphasis on retail which is probably a little indifferent to the pricing." Musk also pushed for early index inclusion and structured the company’s governance to ensure strong founder control, retaining 82 percent of SpaceX's voting power post-IPO.