SpaceX plans record IPO at $135 per share - Reuters
Elon Musk's aerospace company values its business at $1.75 trillion and intends to sell $75 billion worth of stock, Reuters has found out
SpaceX's $1.75 trillion valuation is built in part on hopes of leadership in markets that don't yet exist / Photo: X/SpaceX
Elon Musk's SpaceX intends to set the IPO price at $135 per share, a source told Reuters. Determining the exact price point at this stage - a highly atypical practice. Prior to a series of presentations to investors (SpaceX road show starts June 4), future issuers, as a rule, name only the price range of the placement. The final price is usually formed on the eve of the market debut.
Details
According to Reuters sources, the world's most expensive aerospace and defense company is preparing to sell 555.6 million securities on the Nasdaq exchange and raise $75 billion at a business valuation of $1.75 trillion. Such capitalization suggests that SpaceX will dominate technologies and markets that do not yet exist - from space data centers for artificial intelligence to the colonization of Mars, the agency points out.
SpaceX has no direct peers, which leaves wide room for interpretation when determining its fair value. While Morningstar this week valued Musk's company at only $780 billion - half the current OTC quotations - and advised against chasing shares at the IPO, Bloomberg's calculations indicate that SpaceX's securities are attractive compared to industry peers even with a capitalization of $2 trillion.
Why is SpaceX in a hurry?
SpaceX's rapid entry into the stock exchange - from a confidential filing in March to the publication of a prospectus last month - is dictated by the actions of competitors: OpenAI and Anthropic are also forcing their own offerings in an effort to cream the market. Alphabet has also joined the race for money from AI investors, announcing on May 2 a record plan to raise $80 billion in equity capital, according to Bloomberg.
Context
SpaceX may allocate an uncharacteristically high proportion of shares - up to 30% of the offering - to retail, hoping to attract a mass investor and monetize Elon Musk's cult status. According to Reuters, the founder himself is pledging not to sell his securities for 366 days after the IPO to add certainty to potential shareholders.
This article was AI-translated and verified by a human editor
