SpaceX breaks tradition on IPO with share price - Reuters
Kyiv • UNN
SpaceX plans to raise $75 billion through an IPO at a price of $135 per share. The company's market valuation could reach $1.75 trillion.
Elon Musk's SpaceX, in an unexpected move ahead of its investor presentation, plans to set an IPO share price of $135 to raise a record $75 billion, according to a source familiar with the matter, Reuters reports, per UNN.
Details
According to the source, the rocket and satellite communications company plans to sell 555.6 million shares. Two other sources said the company is seeking a valuation of $1.75 trillion.
This share offering leads a wave of large private companies preparing to enter public markets after several years of subdued IPO activity. AI giants OpenAI and Anthropic are expected to follow SpaceX.
SpaceX aims to set records and break public offering traditions.
Setting a fixed price before investor presentations and book-building is highly unusual, the publication notes.
Companies planning to go public typically set a price range to establish valuation expectations and allow for price adjustments based on investor demand. High demand can drive the final price toward the top of the range or higher before the market debut.
SpaceX's presentation begins on Thursday. The company previously held several testing-the-waters meetings with investors.
The company's plans, including the size of the fundraising, could change as investor meetings progress, the sources warned.
There are no rules prohibiting SpaceX's unconventional plan to set a fixed price for the IPO, said Weihen Chen, a senior partner at the Hong Kong office of the U.S. law firm Wilson Sonsini Goodrich & Rosati.
"Musk is simply taking a 'take it or leave it' approach, which works for his followers and is also sensible given market conditions and the lack of comparable companies," Chen said.