On May 14, sources told CNBC that the SpaceX IPO prospectus could go public as early as next week. SpaceX plans to disclose the filing soon, with advisers aiming slightly ahead of the required deadline. They want to give investors more time to digest the numbers. The company is targeting a roadshow kickoff on June 8, sources said, though timing may still change. SpaceX has not officially confirmed an exchange, a ticker, or a listing date. However, Bloomberg reported a listing around June, and Nasdaq has already changed its rules to allow SpaceX fast-tracking onto the Nasdaq 100.

This is not a routine IPO. Therefore, retail investors need to understand what they are actually buying before the hype takes over.

The Deal Is Historic in Scale

First, consider the sheer size of the offering. Bloomberg reported SpaceX is targeting a raise of $70 billion to $75 billion. That is well over twice the size of Saudi Aramco's record 2019 offering. Furthermore, Bloomberg reported SpaceX could seek a valuation of over $1.75 trillion. These are reported targets, not confirmed terms. Final figures will not be set until immediately before pricing.

Still, even at the lower end, the offering would instantly rank SpaceX among the most valuable publicly traded companies in the world.

Starlink Carries the Business

Next, investors need to understand what actually generates revenue here. Starlink's satellite internet business grew 50% year over year in 2025. It reached $11.4 billion in revenue, with an EBITDA margin as high as 63%, according to data reported by The Information. Moreover, Starlink surpassed 10 million active customers across 160 countries by February 2026.

However, the xAI side of the business tells a different story. xAI burned $9.5 billion in the first three quarters of 2025. During that same period, it generated only $210 million in revenue. As a result, SpaceX's draft IPO prospectus reportedly disclosed a nearly $5 billion GAAP net loss in 2025. That sharp reversal is tied to costs absorbed from the xAI merger.

In other words, Starlink funds the entire operation. Investors must weigh its strong margins against xAI's ongoing cash burn.

The Governance Risk Deserves More Attention

Beyond the financials, governance is a serious concern. According to the prospectus, Musk holds approximately 42% of SpaceX's equity. However, he controls roughly 79% of its votes through super-voting shares. Ordinary shares sold to public investors carry standard voting rights. That means buyers gain an economic stake but no meaningful ability to influence the company's direction.

This structure is more extreme than those at Alphabet Inc. (NASDAQ:GOOGL) or Meta Platforms Inc. (NASDAQ:META), which use similar dual-class designs. Essentially, public shareholders own the upside with virtually no seat at the table.

Index Inclusion Could Force a Wave of Buying

Additionally, market structure matters enormously here. S&P Dow Jones Indices is considering rule changes for companies it defines as “Megacaps.” Those changes would cut the 12-month index inclusion wait to six months. They could waive profitability requirement for exceptionally large listings. Consequently, if SpaceX qualifies for index inclusion, passive funds would face forced buying pressure. Analysts estimate that inclusion could compel roughly $400 billion in passive buying.

That creates significant upward price pressure. It also creates volatility risk if inclusion is delayed or the proposed rules do not pass.

Retail Gets an Unusually Large Slice

Moreover, this offering directly targets everyday investors. Sources indicate that SpaceX's advisers are scouting brokers in countries including the U.K., Japan, and Canada. The goal is to obtain allocations for retail clients outside the U.S. Up to 30% of shares could reportedly go to individual investors. That is roughly three times the typical norm for a large IPO. Bank of America, Goldman Sachs, JPMorgan Chase, and Morgan Stanley are reportedly acting as senior underwriters.

Stocks Already Moving in the Halo

Finally, investors do not have to wait for SpaceX's own ticker to gain exposure. Alphabet holds roughly 5% of the merged company, according to reports. At the reported $1.75 trillion valuation, that stake would be worth approximately $87.5 billion. Alphabet will likely face a lockup period post-listing. However, its SpaceX exposure already sits inside its current stock price.

Similarly, Intel Corp. (NASDAQ:INTC) is a key partner on Terafab. That is a joint venture between SpaceX and Tesla Inc. (NASDAQ:TSLA) designed to expand chip manufacturing capacity. The IPO capital could reportedly be a major source of financing for that project.

The Bottom Line

SpaceX is a genuinely strong business. Starlink's margins are real, its launch dominance is real, and investor demand is clearly real. Nevertheless, the reported $1.75 trillion valuation implies near-flawless execution. SpaceX must deliver across rockets, satellites, AI, and orbital infrastructure at the same time. The prospectus, expected this week, will help public investors study the actual audited numbers. Read it carefully before acting on the excitement.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.