On June 12, 2026, SpaceX completed the largest initial public offering in market history, listing on the Nasdaq under the ticker SPCX. Shares priced at $135, opened trading at $150, and closed the day up roughly 19% at approximately $161 — valuing the company at over $2.2 trillion. The $75 billion offering was reportedly oversubscribed nearly four times, underscoring the scale of investor demand for direct exposure to Elon Musk’s combined space and AI ventures.

Given the size and visibility of this event, we wanted to take a moment to walk through what it means for markets more broadly — and, more importantly, how it connects to your portfolio.

From Rockets to an AI/Space Compute Platform

SpaceX built its reputation — and the bulk of its current revenue — on reusable launch vehicles and the Starlink satellite internet network. But its public filings reveal a considerably broader ambition going forward. Following its acquisition of xAI in early 2026 (which brought the Grok AI models and the X platform under SpaceX’s umbrella), the company has outlined plans to deploy AI compute infrastructure in orbit, pairing Starlink’s global connectivity with energy-intensive AI workloads. Management has described the IPO as the starting point for a new growth phase spanning satellite communications, orbital AI compute, and deep space exploration.

In effect, SpaceX’s debut is as much a story about the next phase of the AI infrastructure build-out as it is about rockets and satellites — which is why it has drawn comparisons to, and renewed attention on, other frontier AI names such as OpenAI and Anthropic, both of which are reportedly progressing toward their own public listings later this year.

How Your Portfolio Connects to This Story

Your portfolio has exposure to this theme through a combination of private and public market positioning. We want to be transparent about how each piece fits together.

1. Private Equity Partnership (Blackstone)

Through our allocation to Blackstone’s private equity platform, your portfolio carries indirect exposure to several pre-IPO positions at the center of the current AI/space cycle — including direct stakes in SpaceX itself, alongside positions in Anthropic and OpenAI. These holdings have been meaningful contributors to performance within that allocation over the past year. SpaceX’s public listing creates a potential path for that vehicle to realize value on its position over time, though any sale of pre-IPO shares is typically subject to lock-up periods and the fund’s own liquidity terms — we do not expect, nor are we anticipating, any near-term cash distribution tied specifically to this event.

2. Public Equities — Alphabet (Google)

On the public market side, Alphabet provides one of the most direct lines of public equity exposure to SpaceX itself. Alphabet has held a stake in SpaceX since 2015, when it first invested alongside Fidelity, and has continued to participate in subsequent funding rounds — reports place its current ownership in the high single digits, a position that, at SpaceX’s new public market valuation, is worth tens of billions of dollars. As a result, Alphabet shareholders — including your portfolio — already had look-through exposure to SpaceX’s value creation well before this IPO, and that stake now has a clearer, market-observable value following SpaceX’s debut.

3. The Bigger Picture

Taken together, we view the SpaceX listing less as an isolated event and more as a signal of two things: continued investor appetite for frontier AI and space platforms, and a maturing pipeline of large private companies — SpaceX, and potentially OpenAI and Anthropic — moving toward public markets. Your portfolio’s combination of private equity access (via Blackstone’s pre-IPO positions) and public equity positioning (via Alphabet’s direct SpaceX stake) is intentionally structured to provide exposure to this broader theme from multiple angles, rather than depending on the outcome of any single name or listing.

What We're Watching From Here

•Valuation and volatility: At roughly $2.2 trillion, SpaceX trades at a substantial premium relative to current revenue, with much of the enthusiasm tied to future ambitions (orbital AI compute, continued Starlink growth) rather than near-term earnings. We expect elevated volatility in the stock — and in the broader AI/space cohort — in the weeks following the debut.

•Lock-up expirations: As with most large IPOs, early shareholders — including private equity vehicles — are generally subject to lock-up restrictions before shares can be sold on the open market. We will continue to monitor these timelines and keep you updated on any portfolio-level implications as they become clearer.

•Related listings on the horizon: With both OpenAI and Anthropic reportedly targeting public offerings later in 2026, we anticipate continued headlines and price action across the broader AI complex. We will keep assessing how these events may affect your overall allocation and will reach out proactively with any material.

A Final Note

Days like this generate a lot of headlines, and it's natural to wonder whether any changes are warranted in your own portfolio. As always, we evaluate developments like this within the context of your overall plan, time horizon, and risk tolerance — not in isolation. If you'd like to discuss how this fits into your specific situation, or simply want to talk it through, please don't hesitate to reach out.

As always, thank you for your continued trust and partnership.

Sincerely,

Jonathan Brel

Senior Portfolio Manager, RBC Dominion Securities

This communication is provided for informational purposes only and does not constitute investment, legal, or tax advice, nor a recommendation to buy or sell any security. References to specific companies are for illustrative purposes only and do not represent a complete list of portfolio holdings. Private market valuations and exposures are subject to significant uncertainty, illiquidity, and valuation lag. Past performance is not indicative of future results, and all investments involve risk, including the possible loss of principal. Please contact us with any questions about your specific holdings or allocation.