SpaceX’s $75 billion IPO is massively oversubscribed, with single investors placing $10 billion orders

SpaceX’s initial public offering has attracted institutional orders for multiple times the available shares, according to people familiar with the matter. Multiple investors have individually placed orders of $10 billion or more.

Banks leading the deal told investors on Tuesday that demand increased further after management meetings, and the offering was described as well oversubscribed. Institutional order books close at 4pm New York time on Wednesday.

The numbers

SpaceX is offering 555.6 million shares at a fixed price of $135 each, raising approximately $75 billion and valuing the company at roughly $1.8 trillion. It would be the largest IPO in history, more than double Saudi Aramco’s $29.4 billion debut in 2019.

The 💜 of EU tech

The latest rumblings from the EU tech scene, a story from our wise ol' founder Boris, and some questionable AI art. It's free, every week, in your inbox. Sign up now!

Banks have indicated that allocations to the institutional portion will be concentrated with large long-only investment management firms. Up to 30% of the offering is reserved for retail investors, who can still submit orders on some platforms beyond Wednesday.

The roadshow

Morgan Stanley is hosting roughly 300 institutional investors at its New York headquarters on Tuesday for meetings with SpaceX President Gwynne Shotwell and CFO Bret Johnsen. Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, and JPMorgan are leading the deal, with 18 additional banks participating.

Shares will trade on Nasdaq and Nasdaq Texas under the symbol SPCX. The IPO prices on 11 June and begins trading on 12 June.

The $3.6 trillion pipeline

SpaceX is not listing alone. Anthropic filed confidentially for an IPO last week. OpenAI filed on Monday. Together, the three companies could add $3.6 trillion in market value to US exchanges, according to Bloomberg.

The concentration of AI-adjacent listings in a single season is unprecedented. Whether institutional investors can absorb $75 billion from SpaceX alone, plus whatever OpenAI and Anthropic raise, without repricing the AI trade will be tested in real time over the next several months.

What the demand signals

Oversubscription at this scale suggests the IPO will price at or above the fixed $135 level and likely trade up on day one. The $10 billion individual orders indicate that the largest sovereign wealth funds and institutional allocators view SpaceX as a must-own position.

The risk is on the other side of the trade. SpaceX is a conglomerate that now includes rockets, Starlink satellite internet, xAI, X (formerly Twitter), and a compute rental business earning $2.17 billion per month from Google and Anthropic. Investors placing $10 billion orders are buying a bet on Elon Musk’s ability to run all of these businesses simultaneously. No independent observer has had access to the full financials of every unit.

Morningstar has valued SpaceX at roughly $780 billion, less than half the IPO target. The demand suggests the market disagrees. By Thursday, the market will start finding out who is right.