SpaceX targets fixed $135 IPO price for roadshow, source says
Elon Musk’s SpaceX plans to set a fixed price of $135 per share before officially marketing its initial public offering, it said in a filing with the Securities and Exchange Commission on Wednesday.
SpaceX said it plans to sell 555.6 million shares, which will raise a $75 billion fund.
Typically at this stage of the process, new issuers will offer a price range that allows a company and its advisors to gauge demand sensitivity at different levels. In this case, SpaceX took a more unique approach after a series of test meetings leading up to the launch of the roadshow.
At a price tag of $135 per share, SpaceX would be worth $1.77 trillion. EchoStar Spectrum and Cursor operations are closed. The valuation would make SpaceX the seventh-largest company in the United States by market value and push it even higher. Tesla’sIts value is approximately 1.6 trillion dollars.
Musk plans to launch the company on Nasdaq on June 12.
SpaceX, which will go public under the ticker symbol SPCX, will be the largest IPO ever and the largest IPO ever. Alibaba’sIt is the largest U.S. IPO to date.
The highly anticipated launch also comes at a time when artificial intelligence companies Anthropic and OpenAI are racing to go public.
Anthropic got ahead of its primary rival on Monday by secretly filing its IPO prospectus with the Securities and Exchange Commission. OpenAI is preparing to file its confidential IPO prospectus in the coming weeks, CNBC previously reported.
SpaceX revealed billions of dollars in losses and Musk’s massive ownership in a prospectus filed with the SEC late last month. On Monday, it filed an amended filing showing that SpaceX plans to reserve up to 5% of the shares in its IPO for purchase by “certain employees and individuals” under its direct stock program.
As SpaceX heads to the public market, rumors are growing that Musk’s ultimate goal is to merge the company with Tesla, CNBC previously reported.
Musk has discussed the possibility of merging the companies with colleagues, and a current Tesla employee told CNBC that the issue has been openly discussed within the company. Tesla and SpaceX have also spent years pooling resources and sharing personnel.
— CNBC’s Lora Kolodny contributed reporting.
