SpaceX IPO Subscriptions Reach Nearly Four Times Offering Size

Investor demand for SpaceX’s upcoming public offering has rapidly surpassed $250 billion, according to sources cited in a Reuters report. This response puts orders at nearly four times the $75 billion SpaceX plans to raise, setting the stage for what could become the most substantial IPO on record. For investors, the significant oversubscription rate reflects heightened interest in the company’s space launch operations and its growing Starlink satellite internet business. According to Reuters citing a source close to the matter, long-only institutional investors have been especially eager, submitting considerable orders during the ongoing book-building process. The robust appetite is partly fueled by SpaceX’s forecast of a $23 trillion addressable market for future artificial intelligence offerings, highlighting its strategy to deploy space-based infrastructure to accelerate AI compute capabilities. Earlier, SpaceX announced plans for an 11-million-square-foot Gigasat factory in Bastrop, Texas. The site is intended to produce the infrastructure for the company’s orbital data center initiative. According to a company update published on X on June 8, CEO Elon Musk stated that production of complete “AI satellites” is set to begin by 2027, with the goal of establishing 1 gigawatt of orbital AI computing power by the close of next year and scaling this tenfold annually moving forward. Although early commitments are strong, final allocation figures could still fluctuate as the deal approaches pricing on Thursday, with trading expected to commence the following day. Some institutional investors, characterized by late submissions, could still impact the ultimate distribution, and current expressions of interest do not ensure final shares will be awarded.