Your Bottom Line #4: SpaceX IPO is officially the biggest in history
PLUS: Household wealth is rising + a costly FIFA kickoff
In this issue:
- SpaceX has officially launched the largest IPO in history – but analysts warn retail investors about jumping in too quickly.
- Good news for homeowners: Equity just ticked up in Q1
- A costly kick-off: FIFA is now underway and tickets are pricier than ever.
1 - SpaceX rockets to $1.77 trillion on history’s biggest IPO
The biggest Initial Public Offering in history launched (no pun intended) this week, as Elon Musk’s Space X officially went public. With a self-set price of US$135 per share, the IPO raised a whopping US$75 billion with the sale of 555.6 million shares on June 11, valuing the company – which makes rockets, satellite internet, and AI tech – at US$1.77 trillion. It has also minted Musk as the world’s first trillionaire.
Other than its unprecedented size, there are a few factors that make this IPO unusual. One is its accessibility for mom and pop investors, with 30% of shares set aside for this group via several major retail trading platforms. SpaceX has also been given special treatment due to its megacap status, with immediate access to major indexes such as the Nasdaq, which typically requires newly-released shares to trade for a minimum of three months before being added to the index. That means anyone with an exchange-traded fund that tracks the Nasdaq 100 will now have exposure to SpaceX.
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There’s also the fact that the company actually operated at a loss in 2025 – something that analysts warn makes it a risky bet for investors. Musks’ technology is, in many ways, at a nascent stage – investors are piling in on the belief that AI will continue to dominate the marketplace, as well as the validity of Musks’ rocket technology.
It’s this pie-in-the-sky thinking that has some experts warning of overvaluation. This includes Morningstar reporter Nicholas Owens, who writes that the company has yet to prove it can deliver on key promises, such as the creation of a reusable Starship rocket, and the commercialization of data centres in space. As Owens puts it, “Neither of these engineering problems has been solved, and we don’t expect them to be until at least 2028.” He says a more realistic take would place shares at just $63, and stamped with a “Very High Uncertainty Rating.”
Not every major index has welcomed SpaceX with open arms; as The Globe and Mail’s Sophie Bertuzzi reports, the S&P 500 is holding firm to its minimum one-year trading requirement for newly-public companies, and will require SpaceX to meet other earnings criteria before it’s granted access.
However, that’s made the S&P an outlier as other indexes have swung open the doors, paving the way for other anticipated megacap IPOs – companies valued at over $200 billion – to receive rapid index access. This sets the stage to accommodate the anticipated wave of AI IPOs – including the highly-awaited Anthropic and OpenAI offerings – in the coming months.
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2 - Canadian home equity on the rise for the first time in a year
The last few years haven’t been the easiest to stomach for homeowners, especially those who purchased properties at the peak of the pandemic. Inflated real estate prices have since deflated in many Canadian markets, leaving affected homeowners carrying extra-large mortgages, while also watching their equity dwindle.
However, a new analysis shows this may be turning around, as household net worth was pushed higher by real estate value for the first time in a year in early 2026.
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This is according to a new report by Royal Bank of Canada Economist Rachel Battaglia on fresh Statistics Canada data; she writes that in the first quarter of the year, households saw their net worth increase by 1.3% to a total $18.6 trillion, due to improvements in both financial and non-financial assets. A standout here was real estate – Battaglia writes that after three consecutive quarters of decline, the CREA MLS Home Price Index increased 1.3% compared to the previous quarter – a “welcome reversal.”
However, households are still bearing the proof of economic struggle; the savings rate continues to fall, dropping to 3.5% from the previous 4.4% as Canadians have had to tap into their nest eggs to keep up with rising living costs, especially higher gas prices.
Household credit debt also rose by 1.1% to $3.25 trillion in Q1, with mortgage borrowing making up the lion’s share – though there are fewer new mortgage loans; combined, they made up $22.6 billion between January and March, the slowest pace of originations since Q1 2024. Finally, RBC points to an overall higher debt-to-income ratio, rising to 14.8% from 14.7%. This means households owe more for every dollar earned, with debt payments now outpacing income growth.
3 - FIFA World Cup 2026: A costly kickoff
Football, footy, soccer – whatever you call it, it has officially taken over North America, with the first Canadian FIFA World Cup match kicking off in Toronto today, with Canada up against Bosnia-Herzegovina.
While the spirit of the games is good, ol’ fashioned sport, the kicker (ha!) here is the cost; the games have been rife with controversy in the months leading up to this first game, over everything from jersey prices to water bottles.
The cost to attend a game itself has exploded since 1994 – the last time the World Cup was held in North America. According to reporting by USA Today, a ticket to a match back then cost just US$45. Fast forward to this millennium, and fans will need to shell out a minimum of several hundreds dollars for a non-finals game. And for the final match: prepare to pony up over a cool $30k. That’s… considerably higher than the rate of inflation. In Toronto specifically, catching a Category three ticket for today’s national team match demands between $980 to $2,240 CAD.
And that’s just the hit to fan’s wallets; Canadian taxpayers are footing (I’m on a roll today) a $1-billion bill to co-host alongside Mexico and the States. But hey, at least FIFA has walked back their reusable water bottle ban.
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Penelope Graham, Head of Content
Penelope has over a decade of experience covering real estate, mortgage, and personal finance topics and her commentary on the housing market is featured on both national and local media outlets.