Spacex Wants a Fee Cut from Ipo Bankers Targeting $500 Million Windfall

SpaceX is negotiating a below-market underwriting fee for its blockbuster IPO, with rates potentially falling below 0.75% of proceeds on a deal expected to raise $75 billion.
Despite the reduced percentage, banks are still projected to rake in roughly $500 million in underwriting revenue due to the sheer size of the offering.
The IPO, which could value the company at over $1 trillion, is being closely watched as a test case for fee structures in mega-cap listings.

SpaceX wants a fee cut from IPO bankers targeting $500 million windfall

SpaceX is pushing banks to accept a lower underwriting fee for its highly anticipated initial public offering, according to people familiar with the matter. The company is seeking a fee of less than 0.75% of proceeds on a deal expected to raise $75 billion, a discount to the 2-3% typically charged for large IPOs. Even at the reduced rate, banks would still collect an estimated $500 million in combined fees, given the deal's scale.

The negotiations come as SpaceX prepares for what could be the largest IPO in history. The company reported profits of roughly $8 billion on revenues in the mid-to-upper teens of billions last year, underscoring its strong financial position. Leadership has been reorganizing, including integrating its xAI initiatives, to align with public-market expectations.

Banks are eager to participate in the marquee listing despite lower fees. "SpaceX's IPO is a once-in-a-generation event that will reshape fee norms," said a capital-markets banker involved in the syndicate. The deal is expected to attract significant investor demand, driven by SpaceX's dominance in launch services and its fast-growing Starlink satellite internet division.

If finalized, the IPO could set a new benchmark for underwriting economics in mega-cap listings. Traditionally, large deals command a premium, but SpaceX's market power is driving tough negotiations. Industry analysts note that even a reduced fee will yield substantial revenue for banks, making the deal highly profitable. A spokesperson for SpaceX declined to comment, and representatives for lead underwriters did not respond to requests for comment.

Correction: An earlier version of this article misstated the potential fee percentage. It is below 0.75%, not 0.5%.