SpaceX, Elon Musk’s rocket and satellite company, is targeting a valuation of $1.75 trillion, including a greenshoe option, for its initial public offering, according to sources familiar with the matter. The company designs, manufactures, and launches advanced rockets and spacecraft, and provides satellite internet services through its Starlink constellation. After initial meetings with potential investors, SpaceX has indicated plans to raise at least $75 billion in what is expected to be an all-primary offering, meaning all proceeds would go directly to the company rather than existing shareholders.
This move marks the first time SpaceX has communicated specific fundraising and valuation targets to banks. The greenshoe option typically grants underwriters the right to sell up to 15% additional shares if investor demand surpasses expectations. The IPO roadshow is anticipated to commence shortly, with the company aiming for a Nasdaq listing under the ticker symbol “SPCX” as early as June 12. Goldman Sachs, Morgan Stanley, BofA Securities, Citigroup, and J.P. Morgan are serving as joint book-running managers for the offering.
Investing in SpaceX offers public investors a rare opportunity to buy into Musk’s vision for space, satellite communications, and artificial intelligence. However, analysts note the complexity of valuing SpaceX, as it lacks a clear public market benchmark and operates in diverse sectors. For the three months ended March 31, SpaceX’s revenue rose to $4.69 billion from $4.07 billion a year ago, while losses widened to $1.27 per share from 18 cents per share. Corporate governance concerns, including a dual-class share structure concentrating voting power with Musk, could also be a consideration for investors.
