• BlackRock has placed an order of at least $5 billion for SpaceX's upcoming IPO, with discussions reaching up to $10 billion, according to people familiar with the matter.
  • The massive cornerstone investment signals strong institutional demand for one of the most anticipated public offerings in history.
  • SpaceX aims to raise tens of billions of dollars, potentially valuing the company at over $200 billion.

BlackRock's Mega-Order

BlackRock, the world's largest asset manager, has committed to buying at least $5 billion worth of shares in SpaceX's initial public offering, sources said, with talks of a potential $10 billion investment. The move underscores deep appetite from institutional investors for the Elon Musk-led aerospace company, which is preparing for what could be the largest IPO in history.

"This is a landmark moment for the space industry," said a person close to the deal. "BlackRock's involvement lends significant credibility and could set a strong pricing anchor."

The order, if finalized, would make BlackRock one of the largest cornerstone investors in SpaceX's flotation. The company has been privately valued at around $180 billion in recent secondary transactions, and the IPO is expected to push its valuation beyond $200 billion.

IPO Market Bellwether

SpaceX's listing is seen as a bellwether for the tech and space sectors, which have faced a sluggish IPO market due to macroeconomic volatility and geopolitical tensions. A successful offering could reignite investor appetite for high-growth listings.

"BlackRock's order is a massive vote of confidence," said an analyst who declined to be named. "If this goes through, it could trigger a wave of interest from other global asset managers."

The IPO is expected to include both primary capital raising and a secondary component, allowing existing shareholders, including employees, to cash out. The offering is being closely watched by regulators due to national security concerns related to SpaceX's defense contracts and Starlink satellite network.

Starlink's Role

A key driver of investor enthusiasm is Starlink, SpaceX's satellite internet division, which has been rapidly expanding its subscriber base. The business is expected to generate significant revenue and cash flow, making SpaceX more than just a launch provider.

"Starlink is the crown jewel," the analyst added. "It's a high-margin, recurring revenue stream that could justify a premium valuation."

However, some analysts caution that the company's capital-intensive nature and competitive pressures from rivals like Amazon's Project Kuiper could weigh on long-term profitability.

What's Next?

SpaceX has not officially confirmed the IPO timeline, but sources say the company is targeting a listing in the second half of 2025. Lead underwriters include major investment banks, though the roster has not been finalized.

BlackRock declined to comment. SpaceX did not respond to requests for comment.

Correction: An earlier version of this article misstated the potential order size. It is at least $5 billion, with discussions of up to $10 billion.