BlackRock eyes up to $10b in SpaceX IPO

BlackRock has discussed investing US$5 billion to US$10 billion in SpaceX’s planned IPO, which could come as early as June 12 on Nasdaq, according to a report.

The report said SpaceX is seeking to raise about US$75 billion at a valuation of roughly US$1.75 trillion, which would make it the largest stock market debut on record if completed at that size.

BlackRock’s investment would come from its US$536 billion in actively managed funds, the report said, though the final amount could change based on the IPO price and other deal factors.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

The proposed IPO price may leave limited room for gains

Valuation experts put intrinsic value closer to US$1.22 trillion, with a simulated median of US$1.29 trillion. That suggests the proposed US$1.75 trillion IPO price leaves little upside for new investors 1.
Much of that value rests on Starlink, SpaceX’s satellite internet business, which brought in about 67% of the company’s estimated US$16 billion in 2025 revenue 2.
Starlink was profitable in 2025, producing US$7.2 billion in adjusted EBITDA, a measure of operating profit, at a 63% margin. SpaceX as a whole still burned cash 3.
That year, SpaceX posted an overall net loss of around US$5 billion, with roughly US$20.7 billion in capital spending and about US$14 billion in cash burn 3.

A small public float could make the stock highly volatile

SpaceX plans to float about 3.3% of its equity, so only a small share of the company would trade publicly. That is unusually low for a company of this size 2.
Analysts expect that limited float to drive sharp swings, with moves of 20% to 30% on major news, similar to Tesla though more pronounced 2.
The setup also raises governance concerns. Elon Musk controls close to 80% of voting rights, which may keep some institutional investors such as pension funds and mutual fund managers away 1.
If SpaceX joins major stock indices, it would add to market concentration. The top 20 companies in the S&P 500 stock index already account for 49% of the index’s weight 4.