5 to 10 billion USD! "The world's largest asset manager" BlackRock considers investing in the "largest IPO in history" SpaceX

BlackRock is interested in participating in SpaceX’s initial public offering, which could position this global asset management giant as a key anchor investor in the largest IPO in history.

According to reports citing insiders, BlackRock is considering investing between $5 billion and $10 billion in SpaceX’s offering. The final investment amount will depend on SpaceX’s IPO pricing and other related factors. SpaceX is expected to begin its formal roadshow as early as early June, with the IPO raising as much as $75 billion.

If the deal goes through, it will be a rare large single subscription in an IPO in nearly 25 years. According to investment bankers, there have been fewer than 12 IPOs in the past 25 years with a single subscription size reaching or exceeding $1 billion. For SpaceX, actively seeking anchor investors, the substantial backing from BlackRock could attract more large institutional investors to follow suit.

Lagging behind peers in holdings, BlackRock plans to increase its stake in SpaceX through the IPO

BlackRock has previously held SpaceX shares through private placements. According to publicly filed mutual fund disclosures, its existing holdings are valued at at least $300 million. However, compared to peers like Fidelity, Baillie Gifford, and Franklin Templeton, which have established large positions, BlackRock’s holdings are noticeably smaller.

This potential IPO investment will utilize BlackRock’s actively managed funds totaling $536 billion. According to sources close to the deal, given the unprecedented scale of this IPO, SpaceX will require multiple institutions to each commit several billion dollars.

On the eve of SpaceX’s listing, BlackRock CEO Larry Fink publicly expressed a positive stance toward Musk. Earlier this year, Fink personally hosted an interview with Musk at the Davos Forum, praising Tesla’s investment returns. “Imagine if many pension funds had invested alongside Musk at Tesla’s IPO—what incredible returns they would have seen,” Fink said on stage. He concluded the interview by saying, “There are many misconceptions about Musk. I can tell you, he’s a true friend of mine. I keep learning from him, and his vision for the future is deeply inspiring.”

Risk can’t dampen enthusiasm; institutional investors remain optimistic

To prepare for the IPO, SpaceX organized a two-day large-scale investor tour last month, including visits to the Starbase launch site in southern Texas and the xAI data center in Memphis. Major delegations from firms such as BlackRock, T. Rowe Price, Capital Group, and Fidelity Investments participated.

According to reports, an investor involved in the trip said, “The logic of the bullish camp is simple: follow Musk’s lead, and you’ll never lose money.” This statement reflects Wall Street’s overall attitude toward SpaceX—despite obvious risks, institutional investors are generally inclined 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 go public at an extremely high price-to-sales ratio, its core AI strategy is still being adjusted, and several key AI researchers have already left. Its space business growth pillar—a fully reusable large rocket—is still in testing.

In terms of corporate governance, investor rights will be heavily restricted. An excerpt from the confidential IPO prospectus obtained by The Information shows that the company plans to explicitly warn investors: “Mandatory arbitration” clauses will limit shareholders’ legal recourse. Additionally, Musk will hold special voting shares, with each share carrying 10 votes, resulting in a highly concentrated control of the company in his hands.

Nevertheless, investor interest is mainly driven by SpaceX’s overwhelming lead in rocket launch technology and the commercial potential of leveraging this advantage to deliver high-value payloads into space—for example, advanced chips supporting AI model operation. However, balancing the unprecedented high valuation with significant governance concessions will be the core test of investor confidence in this IPO.

Risk warning and disclaimer

        The market carries risks; investments should be cautious. This article does not constitute personal investment advice and does not consider individual users’ specific investment goals, financial situations, or needs. Users should evaluate whether any opinions, viewpoints, or conclusions herein are suitable for their particular circumstances. Invest at your own risk.