Billionaire investor Ron Baron has placed a massive $1 billion order for SpaceX shares in the company’s upcoming initial public offering, doubling down on an investment that has already generated over $12 billion in profits for his firm. The move confirms institutional conviction ahead of what could be the largest stock market debut in history, with an estimated valuation around $1.75 trillion.
Baron Capital founder Ron Baron revealed his plans on June 8, 2026, stating he intends to purchase another $1 billion worth of SpaceX IPO shares. His firm already owns approximately 1.25% of the company, a stake worth roughly $15 billion. “I’m not a trader. I’m just an investor investing in businesses that are run by people who I admire, who I trust, who are really smart, great leaders,” Baron said. He added that he is not selling his shares in his lifetime, underscoring a long-term commitment.
The IPO is scheduled to list on Nasdaq under the ticker SPCX on June 12, with a target price of $135 per share. SpaceX plans to raise about $75 billion by selling around 555.6 million shares. Demand has already outpaced supply, with the offering reportedly oversubscribed as both institutional and retail investors scramble for allocations.
However, not all analysts share Baron’s enthusiasm. Morningstar equity analyst Nicholas Owens called the shares “overvalued in almost any scenario, at least in the near term,” setting a fair value estimate near $780 billion—less than half the IPO target. At about 110 times trailing sales, the price leaves little room for disappointment. There are also governance concerns: Elon Musk owns about 42% of the equity but controls around 85% of voting power through dual-class shares. New Constructs Research CEO David Trainer warned investors to avoid the IPO, citing this structure.
Historical data adds further caution. Research from Jay Ritter shows that among mega IPOs with high price-to-sales ratios, 12 of 14 underperformed the market over three years when bought at the first close. Truist Research noted the average maximum first-year drawdown for major IPOs is 55%. These risk factors temper the excitement around what may still be a landmark listing.
