Elon Musk’s SpaceX eyes more than $2 trillion valuation in likely record-breaking IPO: Report
Billionaire Elon Musk’s SpaceX aims for an IPO valuation of more than $2 trillion Bloomberg News It was reported today, citing people familiar with the development. Target sets the stage for what could become the biggest market debut ever.
The rocket, satellite and artificial intelligence company, together with its advisors, is presenting this figure to potential investors in its initial public offering. Bloomberg News reported. The report stated that negotiations are ongoing and details of the offer may still change.
SpaceX, which is also the parent company of artificial intelligence startup xAI, went undercover to file draft IPO documents with the U.S. Securities and Exchange Commission on Wednesday, aiming for a launch later this year. If successful, this would become a record-breaking listing, surpassing Saudi Aramco’s initial public offering in 2019.
Bloomberg News It has previously been reported that SpaceX’s draft IPO filing puts the company on course for a June listing, positioning the company ahead of AI rivals such as Anthropic PBC and OpenAI.
SpaceX’s rising valuation could make it one of the most valuable businesses
SpaceX’s $2 trillion-plus valuation will rise by nearly two-thirds in a few months. The company’s acquisition of Musk’s xAI values the combined company at $1.25 trillion. Bloomberg News It was reported in February.
If the company achieves a $2 trillion valuation, it will outperform all but five companies in the S&P 500 Index (Nvidia, Apple, Alphabet, Microsoft and Amazon). By that measure, it would be larger than Meta Platforms and Musk’s own company, Tesla.
According to the agency’s report, the company will use the proceeds from the IPO to finance Musk’s vision of artificial intelligence data centers in space and a factory on the moon.
The tech billionaire’s plans will require significant capital and resources, spanning many of the companies he controls. He also said in March that the Terafab project would be carried out jointly by Tesla and SpaceX. Bloomberg News reported. He added that at the end of the project, it will also produce its own chips for robotics, artificial intelligence and space data centers.
Who was assigned to carry out the public offering?
SpaceX is tapping Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase & Co. for senior roles in the IPO, the agency reported. and Morgan Stanley, adding more banks to the roster.
The company has set up a meeting with the broader banking union for Monday, according to media reports, and an analyst briefing is planned for later April.
SpaceX is also considering a dual-class sharing structure that could give insiders like Musk extra voting power to dominate decision-making. Bloomberg News It was previously reported.
(With input from Bloomberg)
