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(Bloomberg) — SpaceX aims to sell 555.6 million shares at $135 apiece for its record-breaking $75 billion initial public offering, Reuters reported, citing an unidentified person familiar with the matter.
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The report indicates SpaceX is breaking from the traditional IPO process, whereby companies typically announce a price range before marketing the shares during investor roadshows. SpaceX didn’t immediately respond to a request for comment.
SpaceX’s IPO is among the most closely watched public listings globally. Its rapid march to market after confidentially filing in March — and then publicly last month — comes as investors closely monitor a pipeline of potential offerings from other high-profile technology companies.
“From a valuation perspective, it’s definitely not cheap,” said Fabien Yip, market analyst at IG International. “Investors are buying into hopes of the company’s exponential growth in the future given it’s not yet profitable.”
AI rivals OpenAI and Anthropic PBC look to forge ahead with listings of their own, while Alphabet Inc. — which has its own large language models and AI infrastructure businesses — revealed plans for a record $80 billion equity offering on Monday.
The SpaceX deal would be the largest IPO on record, more than doubling the $29.4 billion raised by Saudi Aramco in 2019.
Elon Musk’s rocket launch, satellite and AI company is expected to disclose the terms of the offering as soon as Wednesday, start formal marketing on June 4 and price as early as June 11, Bloomberg News has reported. The timetable could still slip by a matter of days.
The company is targeting a valuation of at least $1.8 trillion in the offering, Bloomberg has reported. The Reuters report said the company is aiming for a valuation of $1.75 trillion.
“It may be a stretch to achieve the valuation they want even with very generous multiples,” said Vey-Sern Ling, managing director at Union Bancaire Privee. “But the current environment is supportive of all things tech-related and the market has always given Elon Musk the benefit of the doubt.”
Goldman Sachs Group Inc., Morgan Stanley, Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. are leading the SpaceX offering along with 18 other banks. The company, known formally as Space Exploration Technologies Corp., expects to make its debut on Nasdaq and Nasdaq Texas under the symbol SPCX.
