SpaceX, the rocket company founded by Elon Musk, will list on the stock market next week with a valuation of up to $1.75tn (£1.4tn), in what could be the largest initial public offering in history.
The company plans to raise up to $75bn (£56bn) from the IPO, which is scheduled for 12 June. If successful, Musk – already the world's richest person – would become the first trillionaire, according to reports.
“SpaceX will debut on the stock market next week at a $1.75tn valuation, offering retail investors up to a quarter of the $75bn float. Elon Musk could become the world's first trillionaire if the IPO succeeds.”
Up to a quarter of the shares will be reserved for individual investors, the largest retail allocation ever attempted in a megacap float. Until now, SpaceX has been privately held, with only a limited number of institutional investors allowed to buy shares.
For UK retail investors, this marks a rare opportunity to gain exposure to a company that has dominated the space industry with its reusable rockets and satellite internet network Starlink. The IPO allocation suggests that individuals – including those in the UK – may be able to apply through their brokers, though it remains unclear which platforms will offer access.
The company's valuation is based on its recent growth and future prospects in space travel, satellite communications and artificial intelligence. Musk has said he wants ordinary investors to be 'cemented near the centre of the group's ownership', according to reports.
The IPO is expected to be closely watched by markets, given the high valuation and Musk's track record of disrupting industries. Analysts will be looking at demand from both institutional and retail investors.
For UK investors, the key consideration will be whether they can participate and at what price. The IPO price range has not been disclosed, but the company has set a target share price. Given the volatility of tech and space stocks, potential investors should assess their risk tolerance.
SpaceX has been valued at around $1.75tn in private markets, and the IPO could push that figure higher. The company's revenues come from launching satellites, ferrying astronauts to the International Space Station, and its Starlink broadband service.