SpaceX IPO Underwriting Fees Reach $500 Million, with Goldman Sachs and Morgan Stanley Each Receiving About $100 Million
Taylor Wilson
SpaceX set a global IPO record with a $75 billion offering. Total underwriting fees reached roughly $500 million at a razor-thin 0.67% rate — but Wall Street's real payday is off the books.
Why did banks accept the lowest fee rate in history?
The 0.67% rate ties the 2010 General Motors IPO for the lowest ever — far below the industry norm of 4%–7%.
Facebook and Uber listed at 1.1%–1.3%; SpaceX cut that nearly in half.
This means → scale overwhelms rate. Multiply even 0.67% by a $75 billion deal and the total still hits $500 million — the largest single underwriting haul on record.
How was the $500 million split — and who got the most?
Goldman Sachs and Morgan Stanley served as joint lead underwriters, each earning roughly $100 million.
Bank of America, Citi, and JPMorgan each took about $75 million; more than a dozen co-managers received roughly $2 million apiece.
In plain terms = over twenty firms sat on the syndicate, but the top two captured 40% of total fees. The hierarchy is steep.
Why is the greenshoe clause so unusual?
SpaceX negotiated a rare term: if underwriters exercise the greenshoe option — selling an additional 15% of shares, worth roughly $11.25 billion — SpaceX pays zero extra fees.
This means → lead underwriters stand to forgo about $75 million in potential revenue, yet they agreed anyway.
This reflects SpaceX's bargaining power as a once-in-a-generation listing — banks would rather concede economics than lose the ticket.
The headline fee is just the surface — are "soft dollars" the real prize?
Jay Ritter, an IPO scholar at the University of Florida, notes that banks' true earnings come from "soft dollar" returns — institutions that receive allocations repay the favor through future trading commissions.
Wall Street has long priced IPOs slightly below fair value. Roughly three-quarters of IPOs rise on day one, with an average pop of about 19%.
SpaceX's first-day gain matched that historical average. Allocated investors booked roughly $17.3 billion in paper gains. If about 30% flows back as commissions, Wall Street nets over $5 billion extra — roughly 8× the explicit underwriting fee.
So who is the biggest winner?
Professor Ritter put it bluntly: "The biggest beneficiary is undoubtedly Goldman, because it ultimately decides who gets the stock."
Put simply = controlling allocation means controlling the soft-dollar spigot — whoever receives shares owes Goldman a favor.
SpaceX also reserved 5% of offering shares at the $135 IPO price for employees, executives' families, and business partners. This group faces no lock-up and can sell from the opening bell on day one.
Content is for reference only, not financial advice.