Next week, a private rocket company will become one of the ten largest listed firms in the US – and individual investors in the UK will be able to apply for shares. Elon Musk's SpaceX is launching the largest initial public offering (IPO) in history, aiming to raise at least $75bn (£56bn) by selling 555.6 million shares at $135 (£100.84) each. The shares will start trading on the Nasdaq on 12 June, and up to a quarter of them may be reserved for individual investors – a far bigger slice than is typical for a large IPO.
An IPO is when a privately owned company sells shares to the public for the first time. SpaceX is currently owned by Musk and other private backers, but from next week anyone with a brokerage account can apply to buy a stake. The company's activities span space exploration, satellite communication, the social media platform X, and the AI system Grok. Musk has said he will use the funds to expand these ventures and finance futuristic projects such as mining asteroids, colonising Mars, and putting AI data centres in space. The sales prospectus invokes a sci-fi vision of avoiding "the same fate as dinosaurs" and creating an "age of abundance" in space.
“SpaceX's record-breaking IPO explained for UK readers”
SpaceX's potential valuation of about $1.75tn would make it larger than rivals Anthropic and OpenAI, though smaller than giants like Alphabet. Musk's backers argue he has delivered on bold promises before, but sceptics question the feasibility of his most ambitious goals. For investors, the key question is whether the shares are worth the asking price – and whether the company can deliver profits from its high-risk, high-reward business model.
For UK readers, the IPO offers a rare chance to buy into a high-profile US company at launch. Several UK investment platforms – including AJ Bell and Hargreaves Lansdown – are letting clients bid for shares. "Normally, it is quite difficult for UK-based retail investors to access US IPOs," says Jason Hollands, managing director of BestInvest. "But a number of UK brokers and investment platforms are offering access to this one." Minimum subscriptions are typically about £1,000, and investors can check if their platform is taking part and whether they can buy within an Isa or general investment account. Even if you do not buy directly, you may end up with an indirect stake if your pension or tracker fund invests in SpaceX.
Q: How can I buy SpaceX shares? You need to sign up to a broker or platform that is acting as an intermediary for the IPO. In the UK, AJ Bell and Hargreaves Lansdown are offering this service. You register your interest and the amount you want to invest before the shares are priced on 11 June. If demand exceeds supply, it is not yet clear how shares will be allocated – they might be distributed equally or proportionally.
Q: What are the risks of investing in SpaceX? SpaceX is a private company with no public track record of financial reporting. Its valuation is based on future expectations rather than current earnings. The share price could fall quickly after trading begins if the market decides the initial price was too high. Additionally, Musk's ambitions – colonising Mars, asteroid mining, space-based AI – are extremely speculative and may never generate returns.
Q: Will my existing investments be affected? If you hold index-tracker funds or have a pension managed by a fund that buys into major US stocks, you may end up owning SpaceX shares indirectly. The Nasdaq's rules mean SpaceX could be added to index funds soon after listing. Some UK investment trusts, such as Edinburgh Worldwide and Baillie Gifford US Growth, already have stakes in the company.
On 11 June, SpaceX will set the official IPO price based on investor demand. If the sale goes ahead as planned, it could make Elon Musk a trillionaire. But for ordinary investors, the real story starts on 12 June, when the shares begin trading and the market decides whether SpaceX is worth the hype.