SpaceX’s potential IPO is drawing intense interest from investors who believe the company could pursue one of the largest and most volatile market debuts in history, with expectations of a valuation that may exceed $1tn, according to a report by Reuters. 

The rocket and satellite company is considering raising more than $25bn in an offering that could come as early as June, according to a person familiar with the plans. Retail demand is expected to be substantial, despite the significant capital requirements and operational risks associated with commercial space ventures.

Shay Boloor of Futurum Equities Research said enthusiasm is likely to overwhelm concerns about Musk’s unconventional approach. He said the IPO is going to be the “craziest” in the “history of the stock market,” and noted that a $1.5tn valuation could surge above $2tn once trading begins.

Musk’s confrontations with regulators and past governance controversies remain part of the risk profile. The Tesla CEO has previously clashed with the US Securities and Exchange Commission and threatened to leave Tesla earlier this year over compensation disputes. Investors said such drama is intrinsic to backing high-growth ventures run by powerful founders.

Institutional exposure already exists. GAMCO Investors owns SpaceX shares through a spectrum deal with EchoStar, though it is undecided on participating in an IPO. Neuberger Berman holds unlisted shares and believes strong fundamentals underpin demand, citing the combination of a proven launch business and the rapid expansion of Starlink services. Portfolio manager Dan Hanson said SpaceX offers both “the steak and the sizzle.”

Analysts said IPO proceeds could accelerate emerging initiatives, including space-based data centres intended to reduce Earth-based cooling needs. Some investors suggested the company could join the ranks of the largest global technology firms by 2026.

However, research from Jay Ritter at the University of Florida highlights the risks of highly valued debuts. Across four decades, companies listing at more than 40 times annual revenue often lagged the broader market and lost half their value within three years. Even if SpaceX reaches a $2tn valuation, Ritter noted that future returns could still be limited due to the high starting point.

The potential listing would be one of the most consequential capital events for the global technology and aerospace sectors, and a pivotal moment for investors who have waited years for access to one of the world’s most valuable private companies.

If you think we missed any important news, please do not hesitate to contact us at [email protected].

Can`t stop reading? Read more.