Key facts
- SpaceX is targeting a $1.8 trillion valuation and a fixed share price of $135 for its upcoming IPO.
- The company plans to allocate up to 30% of the offering to individual retail investors.
- SpaceX employees will be allowed to sell shares before the standard six-month restriction period.
- Elon Musk will retain 85.1% of the company's voting power post-IPO.
- SpaceX is loss-making due to significant investments in AI and plans for space-based data centers.
- The Starlink satellite internet operation is currently SpaceX's most profitable unit.
SpaceX is set to challenge traditional Wall Street IPO practices with its upcoming listing, aiming for a valuation of approximately $1.8 trillion and a fixed share price of $135. This approach deviates from the typical price discovery process during roadshows, turning it into more of a sales effort.
The company is also altering share allocation, considering up to 30% for individual retail investors, a significant departure from usual IPOs. This move taps into Elon Musk's loyal following, with some strategists viewing it as a safety net for the offering. Additionally, SpaceX employees will have the opportunity to sell some shares before the standard post-IPO restriction period, signaling confidence in the stock's stability.
Despite selling shares, Musk will maintain substantial control, holding an estimated 85.1% of the company's voting power after the IPO. SpaceX's business model relies heavily on future growth, as it is currently loss-making due to massive investments in AI and plans for space-based data centers. Its Starlink satellite internet service is its primary profit driver, while the Starship rocket remains in testing.
Gwynne Shotwell, SpaceX's President and COO, has been crucial in executing Musk's ambitious vision, securing key contracts and commercializing ventures like Starlink.