SpaceX targets $1.75 trillion valuation in record $75 billion IPO
Sources tell Reuters the company is seeking a valuation including a greenshoe option as the roadshow prepares to begin on Thursday.
SpaceX, the rocket and satellite communications company owned by Elon Musk, is targeting a valuation of $1.75 trillion for its initial public offering, according to sources familiar with the matter. The aerospace firm plans to raise at least $75 billion in what would be a record-breaking deal, Reuters reported on Tuesday.
The valuation figure includes a greenshoe option, which grants underwriters the right to sell additional shares if investor demand exceeds initial expectations. This structure allows the offering to expand if market interest proves stronger than anticipated during the upcoming roadshow.
The initial public offering is expected to be structured as an all-primary offering. This means that all capital raised from the sale of shares will flow directly to SpaceX to fund its operations and expansion, rather than providing liquidity to existing shareholders or the company’s founder.
Following early "testing the waters" meetings with potential investors, the company has indicated its target valuation range. The formal roadshow is scheduled to commence on Thursday, marking a significant step in the process of taking the privately held company public.
The IPO would offer public investors an opportunity to participate in Musk’s broader vision, which encompasses space exploration, satellite communications, and artificial intelligence. SpaceX has emerged as a central asset within the billionaire’s business empire, though the final terms of the offering remain subject to change as investor feedback is gathered.
SpaceX did not respond to a request for comment regarding the reported figures. The sources speaking to Reuters requested anonymity to discuss confidential information, noting that the plans, including the size of the raise and the final valuation, are preliminary and subject to revision.
