SpaceX is poised to make history with record $75-billion stock IPO
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SpaceX is poised to make history on Friday with a record-setting IPO that will catapult the once fledgling aerospace startup into one of the most valuable companies on Earth.The company, founded in El Segundo in 2002, is selling at least 555 million shares at $135 apiece, which could raise $75 billion or more.That could give Elon Musk’s rocket, communications and AI company a valuation of at least $1.77 trillion.The IPO would be the largest on record, by far eclipsing the 2019 offering by Saudi Arabia’s state-owned oil giant Saudi Aramco, which raised $29.4 billion.It could also make Musk — whose net worth is now pegged at $707 billion by Bloomberg — the world’s first trillionaire, given his other holdings in Tesla.
Business SpaceX filed Wednesday for the an initial public offering that is expected to raise at least $75 billion and would value the company at as much as $2 trillion.Though it moved its headquarters from Hawthorne to Texas in 2024, SpaceX retains large operations in the South Bay city and blasts off regularly from Vandenberg Space Force Base in Santa Barbara County.Some investors and industry analysts wonder whether SpaceX might be overvalued and question a governance structure that puts Musk firmly in control of the company and its board of directors.However, demand for the shares being sold by nearly two dozen investment banks is so high that the offering is said to be oversubscribed by at least three times by big institutions.
That means investors are buying into Musk’s vision for the company as a leader in rocketry, internet communications and artificial intelligence.SpaceX’s Falcon 9 is the world’s dominant launch vehicle, and the company is developing Starship, a massive rocket that will send astronauts to the moon and possibly Mars, while supporting the build-out of the company’s Starlink satellite internet communications system.Musk also...