SpaceX has raised $75bn (£56bn) from financial firms ahead of its public listing on Friday, in what is expected to be the highest-value stock market debut in history. The space exploration and artificial intelligence company sold shares at $135 each, according to a filing with the US Securities and Exchange Commission, matching the price estimate given last week and leaving the firm's expected initial market value at nearly $1.8tn.
At that valuation, Elon Musk — already the world's richest man — is set to become the world's first trillionaire. But once trading begins, share prices could rise or fall depending on how many shares are made available and how strong demand proves. If shares sell at or above $135 when the market opens on Friday, SpaceX will immediately become one of the most valuable public companies globally.
“SpaceX raises $75bn ahead of Friday's stock debut, expected to make Elon Musk the world's first trillionaire.”
Interest among investment funds and individual retail investors is increasingly expected to be high. Some financial analysts have already set target prices above SpaceX's estimate; the global brokerage Oppenheimer said on Thursday it expects the company to hit $190 per share. The final public price is determined through what is essentially an auction on the open stock market.
Tom Mueller, SpaceX's first official employee and now founder of Impulse Space, told the BBC's Michelle Fleury that "it's unbelievable" to see what the company has become. He recalled when SpaceX got its first rocket engine running, when that engine exploded, when another rocket crashed before "finally" making a successful launch to orbit in 2008. "It's just been an incredible ride," Mueller said. He left SpaceX in 2020 but retains a considerable financial interest in the firm.
The listing on the technology-focused Nasdaq index is being viewed by some as a test case for other companies with private valuations nearing $1tn, including Anthropic and OpenAI, which have recently said they are preparing to go public, likely this year.
Despite becoming a public company — which will put its operations under more scrutiny — Musk will maintain almost total control. Through his combined holding of Class A and Class B shares, he will hold roughly 40% of SpaceX's total equity, giving him more than 84% voting power.