Will SpaceX have the largest IPO in history?

The financial world has witnessed many spectacular IPOs. From Alibaba to Facebook and the Saudi oil giant Saudi Aramco, numerous companies have set records and made headlines. Now, however, a new contender could surpass all previous benchmarks: SpaceX.

The aerospace company founded by Elon Musk is planning an IPO that, according to current reports, could reach a volume of around $75 billion. If this goal is indeed realized, it would be by far the largest Initial Public Offering (IPO) in history.

An IPO of Superlatives

The current record holder is the Saudi Arabian energy company Saudi Aramco, which raised about $29 billion during its IPO in 2019. SpaceX could more than double that figure.

Reports indicate that SpaceX is aiming for a valuation of approximately $1.75 trillion. At the same time, the company is expected to raise around $75 billion in fresh capital. This would not only break all previous IPO records but also catapult SpaceX into the league of the world's most valuable publicly traded companies.

For comparison: Many DAX companies together do not reach the market valuation that SpaceX is already targeting at the IPO.

Why SpaceX is Valued So Highly

Unlike many traditional aerospace companies, SpaceX no longer relies solely on rocket launches for revenue. A significant part of its valuation is based on the satellite internet service Starlink, which is now considered the company's most important growth driver. Analysts view Starlink as a global infrastructure project with long-term billion-dollar potential.

Moreover, SpaceX holds a unique market position:

• Market leader in commercial rocket launches
• Long-term contracts with the U.S. government
• Growing importance for military and security-related applications
• Development of the Starship program for lunar and Mars missions
• Integration of new AI and data infrastructure projects
• For many investors, SpaceX is therefore not just an aerospace company but a combination of technology, infrastructure, telecommunications, and AI conglomerate.

The Demand is Enormous

Even before the actual IPO, there is an exceptionally high demand. There are already significantly more buy orders than shares available. The order book is reportedly oversubscribed multiple times. Additionally, SpaceX plans to reserve up to 30 percent of the offered shares for retail investors—a remarkably high share for a mega IPO of this magnitude.

The high demand does not surprise experts. SpaceX has been considered one of the most sought-after private companies in the world for years. Many investors have previously had no way to invest directly in the company. The IPO could change that.

Despite the enthusiasm, there are also critical voices. Some analysts consider the $1.75 trillion valuation to be very ambitious. Morningstar, for example, estimates the company's value to be significantly lower. Critics point out that SpaceX continues to invest enormous sums in research, development, and infrastructure and has yet to demonstrate sustainable profitability.

Additionally, some market observers see parallels to previous technology hype cycles. The combination of artificial intelligence, space travel, and Elon Musk generates an enormous media effect that could further drive the valuation.

Impacts on the Markets

An IPO of this magnitude would have far-reaching consequences for the capital markets. Analysts at the Financial Times believe that large index funds and ETFs may be forced to invest significant amounts in the stock once SpaceX is included in major indices. This could create additional demand and further support the valuation.

At the same time, experts warn of potential disruptions. The enormous size of the IPO could temporarily draw capital away from other stocks and affect market structure.

How to Buy SpaceX Stocks with Crypto

 While SpaceX is a private company and its shares are not directly available to most retail investors, some investment platforms offer exposure to private companies or related investment products. If you want to invest using cryptocurrency, you can first convert your crypto into fiat currency on a platform that supports both crypto and stock trading. 

For example, Bitpanda allows users to manage cryptocurrencies and invest in stocks and ETFs from a single account, making it a convenient option for investors looking to diversify beyond $Bitcoin and crypto. Always check whether the platform offers access to the specific investment product you are interested in and review any applicable fees and restrictions.

SpaceX IPO Details

As it stands, there is much to suggest that SpaceX will indeed have the largest IPO in stock market history. With a planned issuance volume of around $75 billion, the company would significantly surpass the previous record set by Saudi Aramco. The targeted valuation of $1.75 trillion would also be historic. Whether the valuation is justified in the long term will only become clear after the IPO. However, it is already certain: The SpaceX IPO could be one of the most significant events in modern financial history and shape the capital market similarly to the IPOs of Google, Facebook, or Alibaba.