The countdown is on for what should become the largest IPO in history. Applications for the highly anticipated SpaceX flotation close on Wednesday 10 June, with pricing expected on 11 June and Nasdaq trading set to begin on 12 June under the ticker SPCX. Demand has already exceeded the shares available, with reports suggesting orders have surpassed the $75 billion on offer. Reuters reported demand of around $150 billion, implying the deal is already roughly two times oversubscribed.
For UK retail investors, that excitement has created a rare opportunity: unlike most mega-floats, SpaceX has opened a sizeable allocation (~30%) to individual investors through selected investment platforms. However, investors should remember that high demand and media hype do not automatically translate into strong long-term returns.
Listen to Sharesify podcast on SpaceX IPO, with Bloomberg Intelligence analyst
Why investors are so excited
Founded by Elon Musk, SpaceX has become the dominant force in commercial space launches while also owning the rapidly growing Starlink satellite internet network.
The company is targeting a valuation of roughly $1.75 trillion at an IPO price of $135 per share, making it one of the world’s most valuable listed companies immediately after admission.
Bullish investors see three potential growth engines:
| Growth driver | Investment case |
| Starlink | Global broadband network with millions of subscribers |
| Launch services | Dominant market share in reusable rockets |
| AI infrastructure | Ambitious plans to use space-based infrastructure for AI computing |
However, critics note that the valuation already assumes enormous future success. The Financial Times reported that the IPO valuation equates to roughly 92-times last year’s revenue, despite the company remaining loss-making.
Which UK platforms are offering access?
Several UK investment platforms have secured access to the retail offering.
| Platform | Application deadline |
| Hargreaves Lansdown | 10 June, 11:59pm |
| AJ Bell IPO Centre | 10 June, 7pm |
| CMC Invest SpaceX IPO Offer | 10 June |
| eToro UK SpaceX IPO Offer | 10 June, 9pm |
| Interactive Brokers UK IPO Access | Subject to eligibility |
Investors should check platform-specific eligibility requirements, minimum application sizes and account rules before submitting an application.
The biggest risk: a classic ‘pump and dump’ environment
The greatest danger may not be SpaceX itself, but investor behaviour around the listing.
Several factors create conditions where short-term speculation can overwhelm fundamentals:
1. Social media hype
SpaceX combines three themes that retail investors currently love:
- Artificial intelligence
- Space exploration
- Elon Musk
That combination can generate momentum buying disconnected from valuation.
2. Scarcity effect
Many investors have wanted exposure to SpaceX for years. The fear of missing out (FOMO) can push buyers into paying almost any price during the first few trading sessions.
3. Limited allocations
Oversubscribed IPOs typically result in investors receiving fewer shares than requested. Some investors then buy additional stock immediately after listing, potentially pushing prices sharply higher in the short term.
4. Early profit-taking
Institutional investors and IPO recipients who receive allocations may decide to sell quickly if the stock surges. That can create sharp reversals after the initial excitement fades.
This does not necessarily mean SpaceX is a ‘pump and dump’ stock. It is a real company with substantial revenues and market leadership. However, the trading environment around the IPO could exhibit many pump-and-dump characteristics: hype-driven buying, rapid price appreciation, social-media promotion and then heavy profit-taking.
A valuation that leaves little room for error
Perhaps the most important risk is valuation.
At roughly $1.75 trillion, investors are paying today for growth that may take many years to materialise. Morningstar estimates a fair value closer to $780 billion, less than half the IPO valuation, although bulls argue future opportunities justify the premium.
Even exceptional businesses can deliver disappointing investment returns if investors pay too much upfront.
Investor verdict
SpaceX is undoubtedly one of the most exciting companies to reach public markets in decades. Its leadership in reusable rockets and satellite communications gives it genuine competitive advantages, and long-term growth prospects remain exceptional.
However, UK retail investors should separate the quality of the business from the quality of the investment opportunity at today’s valuation.
The IPO already appears heavily subscribed, media coverage is intense, and expectations are extraordinarily high. That creates significant risk of volatile trading once shares begin changing hands.
For long-term investors, a small speculative position may be reasonable. For those hoping to make a quick profit from IPO day excitement, the risk of being caught on the wrong side of a sharp reversal is much higher than many appreciate.
The countdown is on for what should become the largest IPO in history but the key question is not whether SpaceX is a great company. It is whether a $1.75 trillion valuation already prices in most of that greatness.
You might also like:
