SpaceX, the space exploration and technology company owned by Elon Musk, has reportedly engaged in discussions with Saudi Arabia’s Public Investment Fund (PIF) regarding a potential anchor stake in the company’s upcoming IPO. Sources familiar with the matter suggest PIF is considering an investment of around $5 billion. SpaceX designs, manufactures, and launches advanced rockets and spacecraft. The company aims to revolutionise space technology, with the ultimate goal of enabling people to live on other planets.
The investment from PIF would serve to mitigate dilution of its existing stake of less than 1% in SpaceX, according to sources. SpaceX is reportedly seeking anchor investors well in advance of its highly anticipated stock market debut. The company is aiming to raise a substantial $75 billion, a figure that would surpass previous record-breaking IPOs such as Saudi Aramco in 2019 and Alibaba in 2014.
Sources indicate that SpaceX is currently gauging investor interest in a deal of this unprecedented magnitude. However, they cautioned that no final decision has been reached, and any potential investment remains subject to change. Both SpaceX and PIF have declined to comment on the matter.
Anchor investors, typically institutional buyers, commit to a fixed stake prior to an IPO roadshow, signalling confidence in the offering and bolstering demand. SpaceX recently submitted confidential IPO paperwork to the SEC and is aiming for a market launch later this year.
