SpaceX's second wave of lock-up expirations is here; how should investors position themselves in spa

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SpaceX IPO countdown! This ETF is set to include it 【CSOP ETF Market Update】

Summary:

- SpaceX is expected to go public as early as mid-June, with a potential fundraising size of USD 50–75 billion and a valuation reaching approximately USD 2 trillion, positioning it to become one of the largest IPOs in history.

- ThroughCSOP Hang Seng Hong Kong-US Tech ETF (03442)investors can access the investment opportunities presented by SpaceX’s IPO with low barriers to entry and diversified risk exposure.

- The company’s core business comprises three main segments: aerospace launch (industry-leading with cost reduction), Starlink satellite internet (primary source of cash flow), and the integration of AI computing power with space technology. Starlink has become the core profit engine.

- Overall financially, the company remains unprofitable, but revenue growth is robust, reflecting its current phase of 'high growth + high investment.'

The IPO of the century is entering its final countdown.

According to Reuters, SpaceX $SpaceX (SPCX.US)$ is expected to go public in the United States as early as June 12, aiming to raise USD 50–75 billion, implying a valuation of up to USD 1.75–2 trillion, which would make it the largest IPO in history and place its valuation on par with the Magnificent Seven U.S. tech stocks.1

Musk said: "I can’t think of anything more exciting than reaching for the stars."

Hang Seng Indexes Company Limited announced on May 27 that SpaceX will be added to the designated U.S. constituent list of the Hang Seng Hong Kong–U.S. Tech Index, effective on the 11th trading day following its listing.As the only existing product currently tracking this index, CSOP Hang Seng Hong Kong–U.S. Tech ETF (03442) $CSOP Hang Seng HK-US TECH ETF (03442.HK)$is expected to include SpaceX in line with the index adjustment.2 This means that following this landmark IPO, 03442 will become the ETF in Hong Kong offering direct exposure to SpaceX investment opportunities and is also expected to be the only ETF accessible via Stock Connect’s southbound trading mechanism that includes SpaceX.

The frenzy around this landmark IPO

The term 'landmark IPO' refers not only to its scale but also to its unprecedented scarcity—something never seen before.For investors, SpaceX will represent a rare asset in public markets: it is neither a pure manufacturing company nor a traditional communications firm, but rather a new type of technology platform integrating space transportation, global connectivity, AI computing power, and data networks.

SpaceX has long attracted strong investor interest, with its valuation soaring from USD 137 billion in 2023 to USD 350 billion in 2024, and an IPO target valuation as high as USD 2 trillion.3According to a Reuters report on May 27, U.S. mutual funds plan to reduce their large equity holdings and increase cash positions in preparation for SpaceX’s listing.

Breakdown of SpaceX’s core business

could support a valuation expectation in the hundreds of billions or even trillions of dollars, orstem from the commercial moat built by SpaceX’s core businesses and the broader potential unlocked by AI integration.

The prospectus indicates that SpaceX’s core business focuses on three key areas:

First, disrupting the traditional space launch business (Space)

SpaceX’s core competitive advantage lies in its ability to dramatically lower the cost of accessing space, laying the foundation for commercial spaceflight.

With its Falcon family of rockets and reusable technology, SpaceX has overturned the traditional model of expensive, single-use rockets. Historically, space missions costing billions of dollars per launch have now been reduced to tens of millions of dollars, fundamentally lowering the barrier to space access.

According to the prospectus, SpaceX launches over 80% of the world’s annual orbital mass using Falcon rockets, with a mission success rate exceeding 99%. In the commercial launch sector, SpaceX already holds a leading market position.4

Moreover, within the space business, there is another segment rich in science-fiction appeal and long-term imagination—Starship and deep space exploration. As the largest and most powerful launch vehicle in human history, Starship’s ultimate goal is to enable human landings on Mars and establish permanent settlements. Although it remains in the testing and capital-burning phase for now, Starship has already secured a major contract from NASA (National Aeronautics and Space Administration) to develop the Human Landing System (HLS), serving as the core vehicle for the Artemis lunar mission.

Second is Starlink satellite internet (Connectivity)

Starlink currently represents SpaceX’s strongest revenue-generating business pillar.4。

Starlink’s core value lies in its coverage breadth, with the technical capability to deliver service anywhere on Earth—including the polar regions. Traditional terrestrial networks entail high deployment costs in remote areas, at sea, in the air, and regions with weak infrastructure, whereas low-Earth-orbit satellite networks offer an alternative connectivity solution. By deploying tens of thousands of satellites in near-Earth orbit, Starlink is delivering high-speed, low-latency internet services globally. According to the prospectus, as of the end of March 2026, SpaceX’s Starlink satellites accounted for approximately 75% of all maneuverable satellites in orbit worldwide, capable of providing fiber-like download speeds.4

As terminal equipment costs decline, satellite deployment density increases, and service coverage expands, Starlink is positioned to generate more stable recurring revenue for SpaceX. Per the prospectus, Starlink’s network generated USD 11.4 billion in revenue and USD 4.42 billion in operating profit in 2025.

Third is the integration of space and artificial intelligence (AI)

According to SpaceX’s prospectus,the company is treating AI as a key strategic priority.SpaceX is the first company to deploy a gigawatt-scale AI training cluster. Its strategy involves building its own computing infrastructure and pursuing vertical integration across the AI technology stack, enabling it to train and iterate cutting-edge models at lower cost and higher speed. This approach helps mitigate external supply bottlenecks, shortens model development cycles, and drives continuous performance improvements.4

Moreover, SpaceX recently acquired xAI, combining its launch capabilities and global connectivity network with xAI's AI development expertise. SpaceX expects to begin deploying orbital AI computing satellites as early as 2028.

How is SpaceX’s financial performance?

A closer look at the financials reveals that SpaceX is far from being an empty shell propped up solely by valuation hype. Although its $2 trillion valuation largely reflects a premium for its envisioned integrated ecosystem spanning space, AI, and social platforms, the company’s robust revenue growth and increasingly mature Starlink commercialization remain solid foundations.

In full-year 2025, SpaceX generated revenue of USD 18.674 billion, up 33.2% year-over-year, with an operating loss of approximately USD 2.6 billion and a net loss of USD 4.937 billion. In the first quarter of this year, it reported revenue of USD 4.69 billion (a 15% year-over-year increase), an operating loss of USD 1.94 billion, and a net loss of USD 4.276 billion.4

Notably, despite the group not yet achieving profitability at the consolidated level, the Starlink business has demonstrated strong earnings potential.

According to the prospectus, Starlink’s low-Earth-orbit satellite broadband service generated USD 11.4 billion in revenue in 2025, an annual increase of roughly 50%, making it one of the group’s core revenue pillars. Benefiting significantly from economies of scale inherent in its low-orbit satellite network, Starlink’s EBITDA margin has surpassed 60%, and its operating margin is approaching 40%—making it a true 'cash cow.'

Starlink positions SpaceX’s revenue structure closer to an 'infrastructure plus subscription services' model rather than the one-off, project-based aerospace launch model. This distinction carries significant implications for valuation, as markets typically assign higher valuation premiums to businesses with sustainable and predictable revenue streams.

As a company still in its growth and expansion phase, SpaceX simultaneously exhibits high growth and high investment.To maintain its technological edge, the company must invest tens of billions of dollars annually in capital expenditures for rocket manufacturing, satellite launches, and infrastructure development—including data centers supporting Elon Musk’s xAI. These substantial capital outlays may weigh on near-term profitability.

Deploy SpaceX exposure instantly with ticker 03442

For an average investor, directly participating in the IPO of such a disruptive and high-growth company often involves extremely high capital requirements, low allocation odds, and significant volatility risk from holding a single stock. ETF investing offers a stable and efficient way to capture SpaceX’s listing upside.

On May 27, Hang Seng Indexes Company announced that SpaceX will be added to the designated U.S. constituent list of the Hang Seng Hong Kong–U.S. Tech Index.According to the index rules, the space giant is expected to be officially included in the index on the 11th trading day following its formal listing (earliest market expectation: June 12).

CSOP Hang Seng Hong Kong–U.S. Tech ETF (03442) is currently the only ETF in the market tracking this index and is also a qualified Southbound Trading ETF.2This ETF not only covers leading U.S. tech giants but also includes core technology assets listed in Hong Kong. With SpaceX’s inclusion, 03442 will further enhance its exposure to cutting-edge technologies, allowing investors to benefit from the steady growth of established tech leaders in both the U.S. and China while precisely capturing the commercial space sector’s upside.

Compared with directly participating in SpaceX’s IPO or buying its shares individually in the early post-listing period, the ETF approach offers three advantages: first, lower investment thresholds; second, diversification away from single-stock volatility; and third, automatic alignment with index constituent changes through predefined rules. For investors seeking long-term exposure to SpaceX’s growth without bearing excessive single-stock risk,03442it provides a relatively convenient option.

SpaceX’s listing countdown has already begun—starting from Earth, aiming for space. ThroughCSOP Hang Seng Hong Kong–U.S. Tech ETF (03442), steering the journey of investment toward the vast expanse of stars and oceans.

1 Bloomberg, as of May 27, 2026

2 Hang Seng Indexes Company Limited, as of May 27, 2026

3 Caixin

4 SpaceX prospectus filed on May 20, 2026

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