SpaceX is preparing to raise approximately $75 billion (£55 billion) through an upcoming public stock offering, which has the potential to become the largest initial public offering (IPO) in history. The company has announced that this stock market debut is scheduled for next week.
If the launch proceeds as anticipated, founder Elon Musk, currently the richest person globally, could achieve the milestone of becoming the world’s first trillionaire. Space Exploration Technologies Corp, more commonly known as SpaceX, disclosed in a filing on Wednesday its plan to issue 555.6 million shares priced at $135 each.
This move would establish SpaceX, which has yet to turn a profit, with a market valuation of $1.77 trillion. Within the S&P 500 stock market index, only six companies currently have a higher valuation, with US semiconductor giant Nvidia leading at $5.2 trillion.
Importantly, Musk will not divest any of his shares in this IPO, maintaining 82.4% of the voting rights within the firm. Forbes estimates Musk’s net worth at approximately $825 billion, with his interest in SpaceX valued at around $542 billion. In addition to his role at SpaceX, Musk is also the CEO of Tesla, the electric vehicle manufacturer, and oversees the social media platform known as X.
Due to its considerable size, SpaceX is expected to have a significant influence in the S&P 500, meaning that many investors and pension fund holders will be affected by its stock performance. The company initially filed for a public offering in April. Established in 2002, SpaceX plays a pivotal role in Musk’s vision of creating a sustainable city on Mars and has secured numerous lucrative contracts within the aerospace sector. NASA, for instance, relies heavily on SpaceX rockets for the majority of its launches.
Additionally, SpaceX is competing with other firms like Anthropic and OpenAI to advance artificial intelligence technology. The company recently acquired Musk’s xAI to expand its solar-powered infrastructure to support the increasing energy requirements of the AI sector.
This week, Anthropic, known for its AI chatbot Claude, submitted its own IPO paperwork, while OpenAI, the creator of ChatGPT, is also expected to pursue public offerings soon. Concurrently, Alphabet, the parent company of Google, announced plans to raise $80 billion in equity to bolster its extensive investments in AI infrastructure.
The surge in notable IPOs and fundraising efforts has been interpreted as a strategy to secure capital for data centers that will sustain AI technology.
A promotional roadshow for SpaceX’s IPO is set to commence today, where bankers involved in the deal will present the company to potential investors. Jamie Dimon, CEO of JP Morgan Chase, is reportedly planning to engage with thousands of the bank’s high-net-worth clients regarding the IPO this week, as reported by Bloomberg.
Dimon will host an interactive discussion on Thursday from JP Morgan’s headquarters, joined by Mary Callahan Erdoes, head of the bank’s asset and wealth management division, along with two SpaceX executives: President Gwynne Shotwell and Chief Financial Officer Bret Johnsen.
SpaceX’s public offering signifies a significant financial opportunity for investment bankers. Last month, Goldman Sachs was named the lead bank for the IPO, partnering with Morgan Stanley. JP Morgan, Bank of America, and Citigroup are also among the 23 financial institutions collaborating on this listing.
Reporting by the Associated Press contributed to this article.
