SpaceX, the rocket, satellite, and space company founded by billionaire Elon Musk, has submitted a draft registration statement to prepare for an initial public offering (IPO) to the U.S. SEC, aiming to set a new world record with an IPO valuation possibly exceeding $2 trillion, up from the previously estimated $1.75 trillion.
According to a Bloomberg report on 2 Apr 2024 GMT+7, the documents SpaceX submitted are still drafts and not yet publicly disclosed, known as a Confidential Filing. This allows the company to revise details based on regulatory feedback before official public release.
This move positions SpaceX to potentially list on the stock market as early as June and become the first "mega IPO," preceding AI tech companies like OpenAI and Anthropic, which are also expected to file IPOs in the near future.
On 3 Apr 2024 GMT+7, CNBC reported that SpaceX is accelerating efforts by raising its target valuation for the stock market listing to "more than $2 trillion," up from the prior $1.75 trillion goal.
SpaceX and its financial advisors are beginning to gauge investor interest by presenting this valuation ahead of investor meetings scheduled in the coming weeks, through a process called Testing-the-Waters, which will reveal further insights to support this massive valuation.
If the company’s valuation reaches $2 trillion, it would represent nearly a two-thirds increase within just a few months since the merger deal with xAI, which was previously valued at $1.25 trillion in February.
At this valuation level, SpaceX would become larger than most companies in the S&P 500 index, with only five companies—Nvidia, Apple, Alphabet, Microsoft, and Amazon—still valued higher.
However, the deal details are still under consideration and may change later.
If the IPO succeeds, SpaceX could raise up to $75 billion, far surpassing all records including Saudi Aramco’s $29 billion in 2019. This vast capital will fund Elon Musk’s vision, such as space data centers, lunar factories, and new human infrastructure.
For financial advisory, the company has appointed major banks to handle the deal, including Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, and Morgan Stanley.
At the same time, regional partners will assist in distributing shares: Barclays for the UK; Deutsche Bank and UBS for Europe; Royal Bank of Canada for Canada; Mizuho Financial Group for Asia; and Macquarie Group for Australia.
SpaceX is also considering a dual-class share structure, which would grant insiders like Elon Musk greater voting rights than regular shareholders, allowing continued control after listing. Additionally, this IPO might offer retail investors access to up to 30% of total shares, which is high compared to typical large deals.
In the long term, the company aims to build a lunar base and advance missions to send humans to Mars. Meanwhile, SpaceX continues to dominate low-earth orbit satellite internet with Starlink, serving millions of customers worldwide.
The company’s main revenues come from rocket launches and Starlink, projected to approach $20 billion by 2026, while its AI business xAI currently generates less than $1 billion.
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