Written by: Wall Street Insights
BlackRock's intention to participate in SpaceX's initial public offering could make the world's largest asset management firm a core anchor investor in the largest IPO in history.
According to reports citing sources familiar with the matter, BlackRock is considering participating in SpaceX's IPO with a target size of $5 billion to $10 billion. The final investment amount will depend on SpaceX's IPO pricing and other relevant factors. SpaceX is expected to launch its formal roadshow as early as the beginning of June, with the IPO potentially raising as much as $75 billion.
If the deal goes through, it will be a massive single IPO subscription, a rare occurrence in nearly 25 years. According to reports, investment bankers' statistics show that in the past 25 years, there have been fewer than 12 IPOs with a single subscription size of $1 billion or more. For SpaceX, which is actively seeking anchor investors, the substantial financial support from BlackRock is expected to attract more large institutional investors.
BlackRock, whose holdings lag behind its peers, plans to increase its investment in SpaceX through the IPO.
BlackRock already held SpaceX shares through private placements. According to publicly available mutual fund filings, its current holdings are valued at at least $300 million . However, compared to its peers such as Fidelity, Baillie Gifford, and Franklin Templeton, which have established large positions, BlackRock's holdings are significantly smaller .
This potential IPO will utilize BlackRock's $536 billion actively managed funds. Reports, citing sources close to the deal, indicate that given the unprecedented size of this IPO, SpaceX will need multiple institutions each to contribute billions of dollars.
On the eve of SpaceX's IPO, BlackRock CEO Larry Fink's public statements about Musk have become more positive . Earlier this year, Fink personally hosted an interview with Musk at the Davos Forum, praising Tesla's investment returns. "Imagine how much return a large number of pension funds would have received if they had invested in Musk when Tesla went public," Fink said on stage. At the end of the interview, he stated, "There are too many misconceptions about Musk. I can tell you, he is a true friend of mine. I constantly learn from him, and his vision for the future deeply inspires me."
Risks cannot dampen enthusiasm; institutional investors are generally optimistic.
In preparation for its IPO, SpaceX organized a large two-day investor tour last month, which included visits to the Starbase launch pad in southern Texas and the xAI data center in Memphis. Participants included large delegations from firms such as BlackRock, T. Rowe Price, Capital Group, and Fidelity Investments.
According to reports, an asset management investor who participated in the trip said, "The bullish logic is simple: follow Musk's bets and you've never lost money." This statement reflects Wall Street's overall attitude toward SpaceX— despite the obvious risks, institutional investors generally prefer to participate in this historic deal.
High valuation and governance risks coexist.
Despite optimistic market sentiment, SpaceX's IPO is not without controversy. The company plans to list at an extremely high price-to-sales ratio, its core AI strategy is still in the adjustment phase, several key AI researchers have left the company, and a major pillar of its space business growth—a large, fully reusable rocket—is still in the testing phase.
In terms of corporate governance, investors' rights will be severely limited. According to excerpts from SpaceX's confidential prospectus obtained by The Information, the company plans to explicitly warn investors in the document that a "mandatory arbitration" clause will restrict shareholders' legal recourse. Furthermore, Musk will hold special voting rights shares, each with 10 votes, resulting in a high concentration of control over the company in his personal hands.
Even so, investor interest stems primarily from SpaceX's overwhelming lead in rocket launches and the commercial potential of using this advantage to deliver high-value payloads into space—such as advanced chips powering AI models. However, striking a balance between the unprecedentedly high valuation and significant concessions in governance will be the core challenge testing investor confidence in this IPO.
