The largest IPO in history! SpaceX reportedly seeks to go public next year, aiming to raise over 30 billion and targeting a valuation of 1.5 trillion.

According to reports, SpaceX plans to go public as early as mid-to-late 2026. If SpaceX sells 5% of its shares as planned, the fundraising scale will reach about $40 billion, far surpassing the record of $29 billion set by Saudi Aramco in 2019. After the news broke, EchoStar, which agreed to sell spectrum licenses to SpaceX, surged as much as 12% intraday before retreating to close up about 6%.

Written by: Bao Yilong

Source: Wallstreetcn

SpaceX is advancing its IPO plans, with a proposed fundraising scale far exceeding $30 billion, potentially becoming the largest IPO in history.

On December 9, according to Bloomberg, Elon Musk's SpaceX plans to go public as early as mid-to-late 2026, with financing expected to far exceed $30 billion. The report, citing people familiar with the matter, said the company is targeting a valuation of about $1.5 trillion.

If SpaceX sells 5% of its shares as planned, the fundraising scale will reach about $40 billion, far surpassing the record set by Saudi Aramco. In 2019, Saudi Aramco raised $29 billion, becoming the world's largest IPO. It is worth noting that Saudi Aramco only sold 1.5% of its equity at the time, much lower than the float ratio of most listed companies.

After the news broke, other space company stocks rose on Tuesday. EchoStar, which has agreed to sell spectrum licenses to SpaceX, surged as much as 12% intraday before retreating to close up about 6%. Space transportation company Rocket Lab rose 3.6%.

(Space concept stocks rise)

SpaceX is expected to use part of the IPO proceeds to develop space-based data centers, including purchasing chips needed for operations. However, the report points out that the listing timeline may be adjusted due to market conditions and could be postponed to 2027.

Rapidly Growing Revenue Supports Valuation

According to people familiar with the matter cited in the report, SpaceX expects revenue of about $15 billion in 2025, increasing to $22 billion to $24 billion in 2026, with most of the revenue coming from the Starlink business.

The company's accelerated IPO pace is partly due to the strong growth momentum of the Starlink satellite internet service, including the prospects of direct-to-mobile business and the development progress of the Starship rocket for lunar and Mars missions.

On December 6, Musk posted on social platform X:

SpaceX has maintained positive cash flow for many years, conducting regular stock buybacks twice a year to provide liquidity for employees and investors.

He stated that the valuation growth is the result of progress in Starship and Starlink, as well as securing global direct-to-mobile spectrum, all of which have significantly expanded the company's potential market size.

SpaceX executives have previously raised the idea of spinning off the Starlink business as an independent public company. Company President Gwynne Shotwell first proposed this concept in 2020.

The advancement of the overall company IPO plan this time means that the spin-off listing plan may be shelved.

Internal Share Transactions Take the Lead

While advancing its IPO plans, SpaceX has recently finalized the latest round of internal share sales.

According to people familiar with the matter cited in the report, in current secondary market transactions, SpaceX has set the per-share price at about $420, giving it a valuation higher than the previously reported $80 billion.

The company allows employees to sell about $2 billion worth of shares, and SpaceX will participate in repurchasing some of the shares. According to reports, this valuation strategy aims to set the company's fair market value before the IPO.

SpaceX's major long-term investors include Peter Thiel's Founders Fund, 137 Ventures led by Justin Fishner-Wolfson, and venture capital firms such as Valor Equity Partners.

Fidelity Investments is also a key investor, and Google's parent company Alphabet also holds shares.