SpaceX Pays Record-Low 0.7% Fees on $75B IPO, Banks Earn $500M
SPCX•SpaceX paid about $500 million in underwriting fees on its $75 billion IPO—a mere 0.7% of proceeds, the lowest rate recorded for a mega-offering. Goldman Sachs and Morgan Stanley led the syndicate, each earning roughly $100 million, while SpaceX waived fees on its $11 billion greenshoe option.
1. IPO Fee Structure and Record Rate
SpaceX paid roughly $500 million in underwriting fees on its $75 billion IPO, representing a 0.7% gross spread, the lowest ever recorded for a mega-offering. This undercuts benchmarks such as Alibaba’s 1.2% fee in 2014 and typical spreads near 7% on smaller listings.
2. Lead Underwriters’ Shares
Goldman Sachs and Morgan Stanley each captured about 20% of the fee pool, earning roughly $100 million apiece. Bank of America, Citigroup, and JPMorgan Chase each received around $75 million, while the remaining 16 syndicate members split the balance.
3. Zero-Fee Greenshoe and Additional Terms
SpaceX negotiated a zero-fee arrangement on the $11 billion greenshoe option, saving tens of millions more. The structure incentivized lead banks to focus on pricing, roadshow execution, and allocation ahead of the shares’ 19% first-day jump to $161.
4. Demand and Valuation Impact
The offering drew over $350 billion in orders, with institutional bids exceeding $250 billion and BlackRock alone requesting about $5 billion. Shares closed above $2 trillion valuation on debut, cementing SpaceX’s status in record fundraising.
