SpaceX sets IPO price at $135 per share, valuing company at $1.77 trillion

SpaceX locked in its initial public offering price at $135 per share, according to filings released Wednesday. The aerospace company, controlled by Elon Musk, will enter public markets Friday with a valuation of $1.77 trillion, making it the largest stock debut on record.

The pricing came after SpaceX completed its roadshow to potential institutional investors. The company had initially guided for a price range between $120 and $135 per share before settling on the upper end of that band.

SpaceX operates the Falcon 9 rocket and Dragon spacecraft, which ferry cargo and astronauts to the International Space Station under contracts with NASA. The company also operates Starlink, a satellite internet service with growing commercial and consumer subscribers.

The public offering marks a significant shift for SpaceX, which has operated as a private company since its founding in 2002. Musk will retain control of the company through a dual-class share structure that gives him outsized voting power.

The IPO exceeds the previous record for largest stock market debut by valuation. Saudi Aramco raised $29.4 billion in its 2019 offering at a $1.7 trillion valuation, a benchmark many analysts cited when evaluating SpaceX's entry to public markets.

Underwriters for the offering include Morgan Stanley, Goldman Sachs, and Bank of America. SpaceX did not immediately disclose the size of the offering or the number of shares being sold.

The company has faced scrutiny from regulators and lawmakers over national security concerns related to its Starlink satellite network and government contracts. SpaceX holds multiple contracts with the U.S. Air Force and Space Force for national security launches.

Musk founded SpaceX with the stated goal of reducing launch costs and enabling human missions to Mars. The company has lowered the cost per kilogram to orbit substantially since its first orbital flight in 2008, undercutting competitors on price.

SpaceX previously raised funding from venture capital firms and other private investors at valuations that climbed steadily over two decades. The company last raised capital in a private round valuing it at $180 billion in 2021, before the IPO filing.