Elon Musk's rocket company SpaceX is set to make its stock market debut on Friday in what could become the largest initial public offering (IPO) in history, drawing strong interest from both large investors and individual buyers.
The company plans to sell about 555.6 million shares at $135 each, raising roughly $75 billion. The listing is expected to further boost the wealth of Musk, already the world's richest person, while providing fresh funding for SpaceX's ambitious future projects.
SpaceX aims to become the first company to send humans to Mars. Musk has even tied part of his future compensation to the company's long-term goal of establishing a self-sustaining colony of one million people on the Red Planet.
Speaking during a recent video discussion on his social media platform X with JPMorgan CEO Jamie Dimon, Musk said he had resisted taking SpaceX public for years. However, he said the company now needs significant investment to expand its satellite network and pursue new projects, including space-based artificial intelligence data centers.
Going public will give SpaceX access to large amounts of capital, but it will also bring greater scrutiny from investors and regulators. As a publicly traded company, it will be required to disclose regular financial reports and meet stricter regulatory requirements.
Despite the public listing, Musk is expected to maintain tight control over the company through a special class of shares that gives him enhanced voting rights. These shares will allow him to retain authority over major business decisions, including company strategy and leadership.
In its IPO filing, SpaceX described Musk as the key force behind its success and innovation. The company also acknowledged that losing Musk could significantly affect its operations, reputation and business relationships, while finding a replacement with similar experience would be extremely difficult.
Some major institutional investors have expressed concerns about the company's governance structure. Pension fund officials representing public-sector workers in California and New York recently criticized provisions that give Musk extensive control and limit shareholders' ability to pursue legal action.
A major factor in SpaceX's future growth is the development of Starship, its giant reusable rocket currently undergoing testing. The company believes Starship is essential for expanding satellite launches, transporting cargo and eventually supporting missions to Mars.
SpaceX has already gained a strong position in the commercial space industry through its reusable rocket technology, putting it ahead of many rivals, including Jeff Bezos-backed Blue Origin.
The company's latest filing also highlighted artificial intelligence as a major business opportunity. SpaceX estimates the market for AI-related products and services could be worth trillions of dollars, although it has yet to show a clear path to profitability for its AI business, xAI, which merged with SpaceX earlier this year.
Wall Street is closely watching the IPO because of its potential impact on major stock indexes. If the shares perform strongly, SpaceX could quickly qualify for inclusion in the Nasdaq 100 index, prompting large investment funds that track the index to buy the stock automatically.
However, entry into the broader S&P 500 index is likely to take longer, as companies must meet stricter eligibility requirements, including a longer public trading history.
The highly anticipated listing is expected to be one of the most closely watched market events of the year and could reshape both the space industry and the technology investment landscape.