All the information you require regarding SpaceX's initial public offering (IPO)

Within weeks, one of the most anticipated initial public offerings of the year may occur

What does this mean for investors, and how much might SpaceX be worth when it goes public?

After months of speculation about when and how much the space exploration behemoth would go public, SpaceX filed for its much-awaited stock market debut on May 20.

Elon Musk, the CEO of Tesla, founded the business, which has played a significant role in the development of the contemporary space economy. More than 80% of the US's authorized space launches in 2025 were carried out by its rockets, and its Starlink network, which consists of more than 9,000 satellites, offers internet connectivity throughout the planet.

Now that SpaceX has filed its S-1 registration statement, it will no longer be a private company in a few weeks. The Securities and Exchange Commission (SEC) requires all companies wishing to list on a US stock exchange to submit this document prior to their initial public offering (IPO).

SpaceX intends to list on the Nasdaq exchange under the ticker SPCX, according to the filing.

IMG Dan Ives, head of global technology research at investment bank Wedbush Securities, stated that the listing might be "the largest IPO in stock market history as the company remains at the centre of two of the largest growth opportunities over the coming decades" in reference to artificial intelligence (AI) and space.

What does this mean for investors, where might SpaceX get its revenue, and how much might it be worth at its IPO?

When does SpaceX plan to go public?

The IPO date for SpaceX has yet to be confirmed. The IPO will occur "as soon as practicable after this Registration Statement becomes effective" according to its regulatory filing.

The time between filing an S-1 and the IPO can vary, but it typically takes about 35 days, according to investment administration firm Computershare.

SpaceX's IPO is expected to occur in late June or early July if it proceeds according to a similar schedule. According to unnamed sources familiar with SpaceX's plans, Reuters reported prior to the release of the S-1 filings that the company was aiming for June 12 as the listing date.

When SpaceX goes public, how much will it be worth?

Although the exact value of SpaceX will not be known until it goes public, there is conjecture that it may quickly rise to the top of the world's most valuable companies.

According to reports, SpaceX is aiming for a valuation of £1.75 trillion at its initial public offering. If it reached that level today, it would rank in the top 10 (ninth, just ahead of Tesla) of the world's most valuable companies.

Scottish Mortgage, a London-listed investment trust, recently acknowledged that it values its stake in SpaceX at a £1.25 trillion valuation.

The filing projects a total addressable market (TAM) of £28.5 trillion, of which £26.5 trillion is attributed to artificial intelligence. Enterprise applications, or AI products sold to businesses, are anticipated to account for £22.7 trillion, or about 80% of SpaceX's total TAM. Even visually appealing segments within AI, such as AI infrastructure, make up a relatively small portion of the total (estimated to be worth £2.4 trillion).

In contrast, it is anticipated that space-enabled solutions will make up only £370 billion, or 1.3 percent of SpaceX's total asset value (TAM), while connectivity (Starlink Broadband and Starlink Mobile) will account for an additional £1.6 trillion, or 5.6 percent of the TAM.

What are the potential market implications of SpaceX's IPO?

If SpaceX's IPO is successful, many experts think it could pave the way for a new wave of mega-cap tech IPOs.

According to Stephen Dover, chief market strategist at investment manager Franklin Templeton, AI developers OpenAI and Anthropic, along with other private tech behemoths like Databricks, Stripe, and Anduril, may follow, "potentially creating a wave of new market capitalization large enough to reprice growth equities more broadly."

However, the idea of so many large private companies simultaneously entering public markets carries some risks.

"They will compete for capital not only with each other but also with existing publicly traded growth stocks if multiple mega-cap IPOs occur during the same window of time," stated Dover. Software, semiconductors, fintech, defense technology, and AI beneficiaries may experience rotation pressure as a result.".

Additionally, Dover issued a warning that the heightened scrutiny of public markets may put these private companies' valuations to the test, as the majority have raised substantial sums of money at extremely high valuations during the most recent business cycle.

Investing in SpaceX's IPO: How do you do it?

It is crucial to think about the risks associated with investing in SpaceX before or after its initial public offering (IPO). The company lost almost £5 billion last year and will list at a very high valuation of about 100 times sales (Nvidia, in contrast, trades at about 20 times sales).

The majority of individual investors will not be able to purchase SpaceX's shares directly until it lists. However, you can get exposure before the IPO in a few different ways.

Some investment trusts own it, such as Schiehallion (LON:MNTN), Edinburgh Worldwide (LON:EWI), and Scottish Mortgage (LON:SMT), where SpaceX makes up 17.9 percent of the portfolio as of April 30.

Following SpaceX's initial public offering (IPO), the majority of brokers who let you purchase US-listed stocks should let you purchase its shares just like you would any other listed company.

You may need to fill out a W-8BEN form, a straightforward document that entitles you to a lower tax rate on your investments in the US, if you haven't already purchased US-listed stocks through your broker or investment platform. If and when this is necessary, your broker will ask you for it.

If you are already invested in funds that track major stock markets, you may gain some exposure without having to do anything because SpaceX may also be included in the appropriate index tracker funds, depending on how quickly it is included in major indices.