Elon Musk's SpaceX (NASDAQ: SPCX) is shaping up as one of the most-watched listings in stock market history.
The rocket, satellite internet, and artificial intelligence (AI) company is reportedly preparing to raise around US$75 billion through an initial public offering (IPO).
The shares are expected to be priced at US$135 each.
That would value SpaceX at roughly US$1.75 trillion, or about $2.7 trillion.
If it goes ahead, the float would be far larger than Saudi Aramco's 2019 IPO, which raised US$25.6 billion and still holds the record for the world's biggest listing.
It is worth noting that SpaceX isn't a normal private company, finally coming to market.
It has become one of the most recognisable names in global tech, with a business spanning reusable rockets, satellite launches, Starlink internet, defence work, and now AI.
The company is expected to begin trading as early as next week.
Image source: Getty Images
Why investors are excited
SpaceX generated about US$18.7 billion in revenue in 2025, with Starlink accounting for most of the company's sales.
Starlink is also understood to be the company's main profit driver, helped by demand for satellite internet in remote and underserved areas.
But investors aren't just looking at Starlink.
SpaceX is trying to position itself as a company sitting across space, communications, defence, transport, and AI infrastructure.
That's why the valuation is being watched so closely.
Unlike many newer technology floats, SpaceX already has revenue, customers, and a track record of launching hardware at scale.
Musk owns a large stake in SpaceX and is expected to retain strong voting control after the IPO.
Some reports suggest a successful float could make him the first person in the world to reach a US$1 trillion net worth.
Is the IPO price already too hot?
The harder question is whether the IPO price already captures too much good news.
Some analysts have put a much lower fair value estimate on SpaceX than the expected IPO valuation.
The concern is that investors may be giving SpaceX a lot of credit for future opportunities that are still uncertain.
Investors are being asked to pay for years of expected growth in Starlink, future launch demand, possible AI infrastructure revenue, and long-term space ambitions.
While some of those markets could be enormous, they also come with high costs and execution risk.
And then there's talk about the float size.
Only a small portion of SpaceX stock is expected to trade freely at first.
This could help drive early demand, especially from index funds and large institutions looking for exposure after the listing.
Foolish Takeaway
The SpaceX IPO is likely to attract massive attention from retail and institutional investors.
But the valuation is already pricing in a lot of future growth.
Investors may be looking at one of the world's most exciting companies, but they will not be getting it cheaply.
