SpaceX IPO: Why Elon Musk's 'universal' dream may trigger space-tech investing cycle

Elon Musk may once again be looking to script history as the world's richest man reportedly plans to launch an initial public offering of SpaceX, taking the company into a different orbit. According to several reports, SpaceX is likely to file its draft papers for a $75 billion IPO at an eye-popping valuation of $1.75 trillion.

If the issue materialises in a similar fashion, it could become the biggest IPO ever, dwarfing Saudi Aramco’s $25 billion public offering in 2019 by nearly three times. Founded in 2002, SpaceX is the largest private space company in the US and conducts more launches annually than any other company worldwide, serving as a key indicator for the commercial space industry.

SpaceX is an extraordinary company, and Elon Musk appears to be eyeing a shift toward going 'universal' after the world has already gone 'global', but he should also remain focused on its core business, said Harshal Dasani, Business Head at INVasset PMS. "SpaceX will be the first company from this sector to list publicly and may unlock doors for potential interest in space-tech related investments," he said.

Elon Musk is also discussing allocating as much as 30 per cent of SpaceX’s initial public offering to individual investors — at least three times the usual retail portion — leaning on his loyal fan base and other backers to help stabilise the stock after its debut, according to a report by Reuters citing a person familiar with the matter.

SpaceX could potentially become the largest IPO in history. What makes this particularly interesting is that the valuation, while aggressive, is not entirely without basis. SpaceX's Starlink business has already scaled into a global telecom platform, generating over $10 billion in annual revenue with high margins and rapid subscriber growth, said Viram Shah, Co-founder and CEO at Vested Finance.

"Beyond that, the market is also pricing in future optionalities — from satellite-based connectivity and defence contracts to potential space-based data infrastructure. In that sense, this is being valued more like a platform business with multiple long-duration revenue streams rather than a traditional aerospace company," he said.

"Investors previously had access to SpaceX at valuations closer to $350 billion. If the IPO happens at $1.5 trillion or higher, it highlights a clear shift where a significant portion of returns is being captured before companies go public. This may be the biggest IPO, but the real question for public market investors is not scale, but entry valuation and future return potential," Shah added.