• SpaceX is negotiating underwriting fees below 0.75% for its planned $75 billion IPO, one of the largest in history.
  • Goldman Sachs and Morgan Stanley are expected to earn around $100 million each, while Bank of America, Citigroup, and JPMorgan are set to receive about $75 million each.
  • The mega-listing is poised to reshape IPO fee dynamics and attract intense global investor attention, though governance and valuation risks remain.

Fee Negotiations Heat Up

SpaceX is pushing for a fee rate below 0.75% on its $75 billion IPO, according to people familiar with the matter. Even at that discounted rate, banks stand to collect roughly $500 million in total fees, underscoring the deal’s extraordinary scale. Goldman Sachs and Morgan Stanley, leading the syndicate, are expected to pocket about $100 million apiece, while Bank of America, Citigroup, and JPMorgan Chase are lined up for around $75 million each. Smaller banks in the syndicate will earn $10 million or less. The fee structure, though compressed by historical standards, reflects the allure of advising on what could be the largest IPO ever.

A Record-Breaking Public Debut

SpaceX, the private aerospace and satellite internet giant led by Elon Musk, plans to raise $75 billion through the offering. The company, best known for its reusable rockets and Starlink internet service, reported a net loss in 2025, highlighting ongoing profitability challenges despite its ambitious growth trajectory. The IPO would broaden public ownership of a high-profile tech and space conglomerate, with Starlink driving much of the revenue upside. However, the deal’s sheer size—potentially valuing SpaceX at $1.7 trillion to $2 trillion—raises questions about demand and pricing stability.

Implications for Mega-Listings

The fee negotiations are a key test for Wall Street’s underwriting economics. At a sub-0.75% rate, SpaceX is pushing banks to compete on scale rather than margins, a trend that could reshape future mega-IPOs. “This is a once-in-a-generation deal,” said one senior banker involved in the process, speaking on condition of anonymity. “The fees are lower, but the prestige and ancillary business opportunities are enormous.” Other bankers echoed that sentiment, noting that lead underwriters often gain lucrative follow-on work from such high-profile clients.

Investor and Governance Risks

Retail investors are expected to clamor for shares, but governance concerns loom. Musk’s outsized voting control post-IPO—typical for his companies—could limit shareholder rights. Observers are also watching for disclosure around Starlink’s financials and SpaceX’s long-term profitability. “There’s enormous enthusiasm, but also real risk,” said a portfolio manager at a large mutual fund. “You’re buying into a visionary founder’s control, and that cuts both ways.” The IPO is expected to proceed in the coming months, subject to market conditions and regulatory approvals.

Correction: An earlier version of this article misstated the projected fee pool as $500 million; it has been clarified as roughly that amount based on sub-0.75% rates.