$5-10 billion! "World's largest asset manager" BlackRock is considering investing in "the largest IPO in history," SpaceX.

BlackRock is interested in participating in SpaceX's initial public offering, a move that could make the world's largest asset management company the core anchor investor in what may be the largest IPO in history. According to reports citing people familiar with the matter, BlackRock is considering participating in SpaceX’s offering at a size of $5 billion to $10 billion. The final investment amount will depend on SpaceX’s IPO pricing and other relevant factors. SpaceX is expected to begin its official roadshow as early as early June, with the IPO potentially raising as much as $75 billion. If the deal goes through, it will be a rare mega single-subscription IPO in the past 25 years. According to investment bankers, there have been fewer than 12 IPO cases in the past 25 years in which a single subscription reached or exceeded $1 billion. For SpaceX, which is actively seeking anchor investors, strong financial backing from BlackRock may attract more large institutional investors to follow suit. BlackRock’s positions lag peers, plans to boost SpaceX via IPO BlackRock has previously held SpaceX shares through private channels. According to publicly disclosed mutual fund filing documents, its current holdings are valued at at least $300 million. However, compared with peers such as Fidelity, Baillie Gifford, and Franklin Templeton, which have established large positions, BlackRock’s holdings are significantly smaller. The potential IPO investment will draw on BlackRock’s actively managed funds, which total $536 billion. According to sources close to the transaction, given the unprecedented size of this IPO, SpaceX will need several institutions to each inject billions of dollars. Ahead of SpaceX’s IPO, BlackRock CEO Larry Fink has taken a more positive public stance on Musk. Earlier this year, Fink personally hosted an interview with Musk at the Davos Forum, praising Tesla’s investment returns. “Imagine, if a large number of pension funds had followed Musk at the time of Tesla’s IPO, the returns would have been tremendous,” Fink said on stage. At the end of the interview, he remarked, “There are so many misconceptions about Musk. I can tell you, he is truly my friend. I constantly learn from him, and his vision for the future inspires me deeply.” Risks fail to dampen enthusiasm; institutional investors generally optimistic To prepare for the IPO, SpaceX organized a two-day investor tour last month, including visits to the Starbase launch site in southern Texas and the xAI data center in Memphis. Participants included delegations from institutions such as BlackRock, T. Rowe Price, Capital Group, and Fidelity Investments. Reportedly, an investor from an asset management company who attended the tour commented, “The bull case is simple: if you bet with Musk, you never lose money.” This statement reflects Wall Street’s overall attitude toward SpaceX—despite obvious risks, institutional investors still generally prefer 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 list at a very high price-to-sales multiple, its core AI strategy is still being adjusted, several key AI researchers have already left, and a major pillar of its space business—a fully reusable large rocket—is still in the testing stage. In terms of corporate governance, investor rights will be strictly limited. According to excerpts from the confidential SpaceX prospectus obtained by The Information, the company plans to explicitly warn investors in documents: “forced arbitration” clauses will restrict shareholders’ legal recourse. In addition, Musk will hold special voting shares, with 10 votes per share, concentrating company control highly in his hands. Even so, investors’ main interest comes from SpaceX’s overwhelming advantage in rocket launches, and the commercial possibilities brought by using this advantage to deliver high-value payloads into space—for example, advanced chips supporting AI model operation. However, how to strike a balance between an unprecedented high valuation and significant governance concessions will be the core issue that tests investors’ conviction in this IPO. Risk Warning and Disclaimer The market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account any individual user's special investment goals, financial situation, or needs. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular circumstances. Investment is at your own risk.