Key facts
- SpaceX plans an IPO with a fixed share price of $135 and a target valuation of $1.8 trillion.
- Up to 30% of the offering may be allocated to individual retail investors.
- Employees will be permitted to sell shares before the standard six-month lock-up period.
- Elon Musk will retain 85.1% of the company's voting power post-IPO.
- SpaceX is loss-making due to investments in AI and data centers, with Starlink being its most profitable unit.
SpaceX is preparing for its initial public offering, challenging traditional Wall Street norms with a fixed share price of $135 and a target valuation of $1.8 trillion. This approach deviates from the typical price discovery process during roadshows, shifting focus to a sales effort. The company is also considering allocating up to 30% of the offering to individual retail investors, a significant departure from standard IPOs, potentially leveraging Elon Musk's large following.
Employees will be permitted to sell shares before the standard six-month restriction period, signaling confidence in the stock's stability. Despite these sales, Musk is set to retain substantial control, holding an estimated 85.1% of the company's voting power post-IPO. SpaceX, while loss-making due to significant investments in artificial intelligence and plans for space-based data centers, relies on its profitable Starlink satellite internet operation to fund these ambitious ventures.
Gwynne Shotwell, SpaceX's president for 24 years, is credited with executing Musk's ambitious goals through engineering expertise and dealmaking. She has been instrumental in securing key contracts, including a $1.6 billion NASA deal in 2008 that helped stabilize the company. Her compensation last year reached $85 million, largely from stock awards, highlighting her integral role in SpaceX's growth.