SpaceX Reportedly Targets $75 Billion IPO, May Set Price At $135 Per Share

A fresh report has put Elon Musk-led SpaceX back in the spotlight.

According to people familiar with the matter, the company is preparing a public issue that could bring in about $75 billion. The proposed share price is said to be $135, which would place the company's valuation near $1.75 trillion.

If completed, the offering would rank among the biggest initial public offerings (IPOs) ever seen in global markets.

The report also indicated that roughly 555.6 million shares may be offered as part of the transaction.

Pricing Plan Stands Out

The size of the issue is not the only thing drawing attention.

Reports suggest SpaceX could enter its investor roadshow with a pre-determined price rather than the usual price band used by most IPOs.

Typically, companies announce a range and then decide the final issue price after speaking with investors.

In this case, Musk's company appears to be considering a different route.

People tracking the deal say discussions with investors are expected to begin soon, although details may still change before the offering is finalised.

Retail Participation Could Be Higher Than Usual

One proposal being discussed is a larger allocation for individual investors.

Reports have suggested that as much as 30% of the issue could be earmarked for retail participants. That would be significantly higher than what is generally seen in large public offerings.

The IPO is also expected to be structured as a fresh issue, meaning the funds raised would go directly to the company.

Existing shareholders are not expected to offload stock through the proposed offering.

Funds Likely To Support Expansion Plans

SpaceX has been expanding beyond its traditional rocket launch business.

The company operates the Starlink satellite internet network and has been investing in newer technology initiatives.

Earlier this year, SpaceX combined with Musk's artificial intelligence venture xAI in a deal that reportedly valued SpaceX at $1 trillion and xAI at $250 billion.

Market reports indicate that money raised through the IPO could be directed toward satellite infrastructure, computing capacity and other long-term projects.

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Valuation Continues To Divide Opinion

Not everyone is using the same valuation yardstick for SpaceX.

While some investors see significant upside tied to satellite communications, artificial intelligence and future space technologies, others remain more conservative.

Research house Morningstar recently estimated the company's value at around $780 billion, well below the valuation being discussed ahead of the proposed listing.

Even so, SpaceX remains one of the most closely watched private companies in the world.

A successful listing would not only mark a major milestone for the company but could also revive interest in large technology IPOs after a relatively quiet period in public markets.

Sources:

The Economic Times

Moneycontrol

Business Standard

Yahoo Finance