SpaceX launched its initial public offering (IPO) today, setting the company’s valuation at an eye-watering $1.77 trillion, according to fortune.com. The IPO offers $75 billion worth of shares, a small fraction of the company’s equity. BlackRock has placed a $5 billion order for shares in the money-losing aerospace and satellite firm led by Elon Musk.
The IPO follows a dual-class share structure, a model that has become common in tech listings. This structure gives disproportionate voting power to founders and insiders, allowing Musk to maintain control despite public investment. Morningstar has valued SpaceX shares at $63, which is 53% below the IPO price, reflecting some skepticism about the lofty valuation. The company’s ambitious goals include plans to put a million people on Mars.
SpaceX’s IPO valuation dwarfs many established tech giants and marks one of the largest public offerings in history. The dual-class structure echoes Google’s 2004 IPO, which also prioritized founder control over shareholder influence. This approach has become a hallmark of tech IPOs, enabling visionary founders to pursue long-term, high-risk projects without traditional shareholder pressures.
BlackRock’s $5 billion order highlights strong institutional demand despite SpaceX’s current losses. The IPO’s success will be closely watched as a benchmark for future space and tech sector offerings. SpaceX’s market debut today sets a new standard for valuation in the aerospace industry, with shares priced at $75 billion in total equity offered.