As SpaceX gears up for its highly anticipated initial public offering (IPO) on Friday, a relatively obscure Canadian investment firm is poised to realise staggering returns from its early investments in the aerospace giant. Stack Capital Group Inc., listed on the Toronto Stock Exchange, stands to gain more than 1,100 per cent on its initial stake, underscoring the enormous potential of this landmark IPO.
Stack Capital’s Strategic Investment
Stack Capital Group made its initial foray into SpaceX, formally known as Space Exploration Technologies Corp., with an investment of US$5 million in October 2021, followed by an additional US$3 million in March 2025. This US$8 million investment is set to balloon in value to over US$100 million once SpaceX’s shares commence trading on the Nasdaq. Jeff Parks, co-founder and CEO of Stack, expressed his optimism, stating, “It is a monumental win. Everyone is just so focused on what the stock is going to do on day one or day five, but who cares about that? What is it going to do over the next five years? That is where I think there is so much value creation still to be had.”
The Massive IPO and Its Implications
The scale of SpaceX’s IPO is unprecedented, with the company aiming to raise US$75 billion at a staggering valuation of US$1.75 trillion. This venture not only highlights the potential for substantial returns for early investors like Stack, but it also serves as a compelling endorsement of Stack’s investment strategy. The firm focuses on acquiring shares in large, privately held companies, which allows early investors to liquidate their stakes before public offerings occur. Parks emphasises the firm’s mission: “Our value-add is to provide individuals who do not have and cannot get exposure to the private markets, to give them that access.”
SpaceX is currently Stack’s largest investment, representing nearly one-third of its portfolio. The company also holds significant stakes in other tech powerhouses, including OpenAI, which is anticipated to go public soon. In September 2025, Stack invested US$8 million in OpenAI, which Parks estimates has already appreciated to around US$15 million. Other notable holdings include Canva, a graphic design software firm, and Hopper, a travel platform based in Montreal, both expected to launch their own multi-billion-dollar IPOs in the next few years.
Investor Interest and Market Dynamics
Stack’s stock has attracted considerable attention, with its share value more than doubling over the past year. Parks believes that there is still substantial room for growth, particularly when compared to trading multiples of its American counterparts. For instance, the Fundrise Innovation Fund, traded on the New York Stock Exchange, operates at nearly ten times its net asset value, while Destiny Tech100 Inc. is valued at approximately double its net asset value. In contrast, Stack’s current multiple sits around 1.6 times, suggesting considerable upside potential.
While Stack plans to eventually divest its SpaceX holdings, Parks clarifies that the firm does not aim to add value by holding public companies indefinitely. “We don’t provide a value-add by holding public companies for people,” he stated. The intention is to reinvest the proceeds into other burgeoning startups, primarily focusing on sectors like artificial intelligence, which Parks describes as a hotbed of innovation and revenue growth.
The Future of SpaceX and the Broader Market
SpaceX’s revenue trajectory appears promising. Following a reported revenue of less than US$19 billion in 2025, Goldman Sachs and Morgan Stanley, both major underwriters for the IPO, predict that revenue could soar to nearly US$160 billion by 2028 and exceed US$300 billion a mere two years later. By 2040, estimates suggest revenue may reach an astonishing US$3.4 trillion, with much of this growth anticipated to arise from SpaceX’s AI division. Recently, this division secured a lucrative agreement with Alphabet Inc., Google’s parent company, for cloud computing services, which is expected to yield monthly payments of US$920 million from October 2023 through June 2029.
In addition to Stack, other Canadian firms are also poised to benefit from SpaceX’s success. The Ontario Teachers’ Pension Plan made a significant investment of approximately US$220 million in SpaceX in 2019, a stake that is now valued at as much as US$11 billion.
Why it Matters
The wave of high-profile IPOs, epitomised by SpaceX’s monumental offering, reflects a broader trend of companies remaining private for extended periods, compelling investors to seek alternative routes into private markets. As firms like Stack Capital navigate this landscape, they provide essential access to investment opportunities that were once the exclusive domain of insiders, thereby democratizing investment in some of the world’s most promising and rapidly expanding companies. This shift not only creates potential wealth for investors but also fuels innovation across industries, suggesting a transformative era for both public and private market dynamics.
