SpaceX Moves Towards Historic IPO with $75 Billion Valuation
SpaceX, the renowned aerospace manufacturer and space transport services company, is set to take a monumental leap with its Initial Public Offering (IPO). The firm has revealed its preliminary S-1 filing which indicates plans for an astounding $75 billion share sale. If realised, this offering would surpass the prior record for the largest IPO, held by Saudi Aramco’s $26 billion raise in 2019.
This ambitious IPO is being coordinated by a robust group of 23 investment banks, with Goldman Sachs and Morgan Stanley designated as the lead investors. While the exact fees associated with the transaction remain unclear, estimates suggest that these financial institutions could collectively earn between $800 million to over $1 billion in fees from the share sale.
Goldman Sachs has secured a notable position as the "lead left" bank, a designation that signals its primary advisory role during the IPO process. This status not only affords Goldman substantial financial rewards but also places it in a pivotal position to shape the narrative surrounding SpaceX’s market debut. According to Joseph Lucosky, managing partner at legal firm Lucosky Brookman LLP, the lead left bank is responsible for managing the IPO’s bookrunning, including tasks like gauging institutional investor interest and drafting the regulatory documentation.
In contrast, Morgan Stanley is labelled as the "stabilisation agent," tasked with managing the stock’s initial trading phase, including implementing measures to stabilise the stock price in accordance with regulatory standards. Additionally, Morgan Stanley is expected to handle allocations for retail investors via their direct share program, which typically caters to a select group of participants. Everyday investors will also have opportunities to purchase shares through platforms like E-Trade, Charles Schwab, Fidelity, Robinhood, and SoFi.
While SpaceX has not confirmed the proportion slated for retail investors, reports suggest that CEO Elon Musk might allocate up to 30% of the total shares—three times the usual allocation for everyday investors in prior IPOs. Morgan Stanley’s previous collaborations with Musk include the successful 2010 IPO of Tesla, and they have maintained a supportive relationship through various ventures, including Musk’s acquisition of Twitter (now X) in 2022.
The landscape changes dramatically for these banks as they contend with the repercussions of Musk’s high-profile transactions. After a financial downturn impacting the value of loans tied to Musk’s ventures, the tide shifted following a political realignment in 2025. The resurgence of the loan values followed the electoral victory of Musk supporter, President Trump, reinvigorating Morgan Stanley’s relationship with Musk.
Michael Grimes, a key ally of Musk and currently an investment banking chair at Morgan Stanley, further solidified these ties by accompanying Musk during his stint in Washington D.C. under the Trump administration.
There has yet to be information released surrounding the specific fees for Goldman Sachs and Morgan Stanley, though both are projected to receive substantial returns similar to their earlier collaborations, such as that with Tesla. The choice of banks can have significant ramifications on Wall Street’s dynamics, according to Lucosky, further heightened by the stature and potential profits of deals of this magnitude.
With the 2026 IPO market shaping up to be competitive, both investment houses will vie for prominence, especially with high-profile companies such as OpenAI and Anthropic anticipated to go public soon.
The stakes in this IPO are monumental, not only for the participating banks but also for investors looking to partake in the next chapter of SpaceX’s transformative potential.
For ongoing insights into the evolving stock market landscape, stay tuned for further updates.
