American aerospace company SpaceX is reportedly targeting a valuation of approximately $1.75 trillion in its upcoming initial public offering (IPO).
According to the Wall Street Journal on June 2, SpaceX plans to submit an amended filing to regulators soon, detailing the expected price range for its IPO scheduled for next week.
Earlier this year, after acquiring Elon Musk's artificial intelligence company xAI, SpaceX was valued at about $1.25 trillion. The valuation target for this IPO is $500 billion higher.
Reuters reports that SpaceX has set a fixed offering price of $135 per share and plans to sell 555.6 million shares, representing less than 5% of its total equity, to raise $75 billion. While the percentage of shares being sold is small compared to typical IPOs, the amount raised would be unprecedented.
Reuters noted that fixing the offering price ahead of investor presentations and demand forecasts is highly unusual. Typically, companies propose a price range first and then finalize the offering price based on investor demand, which can lead to a price at the upper end or above the proposed range if demand is strong.
This IPO is expected to be conducted entirely through new share issuance, meaning all funds raised will go directly to the company, with no existing shareholders selling their shares. The funds are anticipated to be used for expanding AI computing resources and satellite network growth.
SpaceX plans to hold a corporate presentation for institutional investors in New York later this week to kick off its investor recruitment. It is also reported that preliminary interest checks, known as "testing the waters," have already been conducted with some investors.
Goldman Sachs and Morgan Stanley are leading the underwriting for the IPO. Goldman Sachs will oversee the allocation of shares and the collection of funds, while Morgan Stanley will serve as the stabilization agent to support the stock price on the first day of trading. Bank of America, Citigroup, and JP Morgan are also participating as co-managers.
SpaceX is expected to finalize the offering price on June 11 and begin trading on the Nasdaq under the ticker symbol "SPCX" on June 12.
* This article has been translated by AI.
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