At its Initial Public Offering (IPO) on June 12, Elon Musk’s SpaceX is aiming to raise $75 billion – the biggest IPO of all time – and with a potential valuation of over $2 trillion, eclipsing Aramco’s $1.7tn in 2017.
An IPO of this scale could have a potentially huge impact on capital markets, of the kind not seen since the antitrust efforts that broke up the Standard Oil monopoly in 1911, drawing liquidity from the system and affecting many other companies, with OpenAI and Anthropic expected to file for their own IPOs later this year.
While SpaceX had annual revenue of $19.3 billion, $11.4bn from Starlink, a valuation of $2 trillion would give it a price-to-sales ratio over 100, far in excess of the S&P 500 average of around 4.7, but below that of other satellite rivals. However, the most surprising figure in the SpaceX filing is the total addressable market of $28.5 trillion, the “largest TAM in human history”, $22.7 trillion of which is related to xAI, running orbital AI data centers.
