SpaceX confirmed the initial details of its anticipated initial public offering and aims for a record operation. Elon Musk's company intends to raise US$ 75 billion with a price of US$ 135 per share and a valuation close to US$ 1.75 trillion.
The company plans to debut on the Nasdaq with an unusual strategy for Wall Street. The goal is to set the price before the formal round with investors and reduce the usual negotiation margin in this type of operations.
SpaceX confirmed the initial details of its anticipated IPO.
How SpaceX's IPO Will Work
SpaceX expects to sell 555.6 million shares as part of the initial public offering. The company aims to maintain a reference price of US$ 135 per share before starting meetings with institutional investors.
According to the disclosed plan, the presentation tour will begin on June 4, and the stock market debut could take place on June 12 under the ticker SPCX.
The operation would be led by Goldman Sachs, Morgan Stanley, BofA Securities, Citigroup, and JP Morgan.
What will SpaceX's IPO be like?
Why SpaceX Bets on a Valuation of US$ 1.75 Trillion
The proposed valuation is primarily supported by Starlink, the satellite internet network that drove a significant portion of the company's revenue over the past year.
Additionally, SpaceX links its future growth to projects related to artificial intelligence, missions to Mars, and the development of solar-powered data centers in space.
Why SpaceX bets on a valuation of $1.75 trillion
The company also expanded its scale after the integration with xAI, Elon Musk's artificial intelligence company responsible for the Grok chatbot. That operation valued SpaceX at US$ 1 trillion and xAI at US$ 250 billion.
What SpaceX Will Do with the Funds Raised
The offering will be entirely primary, so the resources will go directly to the company and not to current shareholders.
According to the information released, the funds will be allocated to expand computing capacity for artificial intelligence and accelerate the expansion of the Starlink satellite network.
What will SpaceX do with the funds raised?
Moreover, Elon Musk will have to hold onto his shares for 366 days after the stock market debut. This measure aims to reinforce the confidence of new investors.
The Doubts Facing SpaceX on Wall Street
One of the main challenges will be justifying such a high valuation. Morningstar recently estimated that SpaceX is worth US$ 780 billion, a figure far below the target set by the company.
The doubts facing SpaceX on Wall Street
The company recorded net losses over the past year. In the quarter ending March 31, revenues grew from US$ 4.07 billion to US$ 4.69 billion, but losses increased significantly.
Currently, the connectivity business led by Starlink is the only segment generating profits, while other areas continue to require substantial investments.
