Catenaa, Tuesday, June 02, 2026- SpaceX is negotiating to pay razor-thin fees to Wall Street firms handling its IPO, but banks are still likely to rake in about $500 million from the record-setting market debut.
Elon Musk’s space and artificial-intelligence conglomerate is negotiating to pay less than 0.75% for the $75 billion it aims to drum up in an initial public offering this month, Bloomberg News reported.
Even at that low spread, it will likely amount to one of the biggest fee events ever for Wall Street firms that arrange public listings.
The lead banks, Goldman Sachs Group and Morgan Stanley, are positioned to capture a larger share of the fee pool than the other 21 brokers involved.
The figures represent the base fee being charged to SpaceX and don’t factor in other discretionary incentives, the report said.
Investment banks typically charge 4% to 7% for IPOs that raise less than $1 billion on average. That fee percentage drops sharply for giant debuts, when banks corral investors to hand over billions of dollars at once. But even in those cases, it’s usually more than 1%.
The slim margin that banks are offering Musk has implications for a slate of blockbuster IPOs in the works for this year. That could force investors and analysts to temper expectations for Wall Street’s earnings as OpenAI and Anthropic also lay the groundwork to tap equity markets in the months ahead.
One of the lowest spreads ever charged for a mega IPO was when banks negotiated a 0.75% fee with the US government for General Motors in 2010.
Back then, Wall Street was desperate to rebuild public sentiment after taking taxpayer-funded bailouts in the financial crisis. There was also concern about a backlash if they made a juicy profit. At the time, the US government owned a majority of the automaker after saving that industry, too.
Chinese internet giant Alibaba Group Holding, which raised $25 billion in its 2014 IPO, paid about $300 million to underwriters, including performance fees.
Even Saudi Aramco, famously tight-fisted on handing fees to banks, was expected to pay over 1% when it was pursuing an international listing.
That pool was cut sharply after Saudi Arabia sidelined global banks advising on Aramco’s IPO and pared it back to a mainly domestic affair.
SpaceX is targeting a valuation of about $1.8 trillion, Bloomberg previously reported. At that size, a $75 billion fundraising would easily eclipse the previous IPO record. The company will reserve up to 5% of shares from the offering for certain employees and friends and family of its executive officers, according to a filing Monday.
Meanwhile, Anthropic confidentially submitted draft paperwork for a public listing in a bid to leapfrog longtime rival OpenAI in the race to the stock market this year. And Google parent Alphabet said it’s raising $80 billion through a package of equity offerings.
Altogether, the massive sales may test how much Wall Street bankers can raise so quickly from the public.
