SpaceX, the aerospace giant founded by Elon Musk, has reportedly taken the first formal step towards the largest initial public offering in history by filing confidential paperwork to go public. According to sources familiar with the matter, SpaceX filed with the Securities and Exchange Commission this week, marking a significant milestone for the Texas-based company.
By filing confidentially, SpaceX can advance its listing plans without immediately revealing its internal financial data to the public. This move comes on the heels of the company’s recent acquisition of Musk’s AI startup, xAI, for $250 billion, further solidifying SpaceX’s position in the market.
Sources close to the deal have revealed that SpaceX is aiming to raise approximately $75 billion through the IPO, with a target valuation of $1.75 trillion. This valuation would place SpaceX among the elite group of American companies, trailing only tech giants like Nvidia, Apple, Alphabet, Microsoft, and Amazon. The company’s rapid growth is evident, considering it was valued at around $90 billion just four years ago.
The IPO is expected to take place in June, with Musk reportedly aiming for the debut to coincide with a rare planetary alignment and his 55th birthday. If successful, the listing would easily surpass the $29 billion raised by Saudi Aramco in 2019, currently holding the record for the largest IPO ever.
The timing of the filing aligns with recent rule changes at the Nasdaq stock exchange, which removed a requirement that at least 10% of a company’s shares must be available to the public to join the Nasdaq 100 index. Since SpaceX plans to float less than 5% of its equity, this rule change is crucial for its inclusion in major exchange-traded funds.
In addition, SpaceX is considering allowing existing shareholders to sell their stakes on the first day of trading, bypassing the standard 180-day lock-up period that typically prevents insiders from cashing out immediately after a company goes public. This move could provide liquidity to early investors and employees of the company.
Overall, SpaceX’s IPO plans signal a significant milestone for the company and the broader aerospace industry. With a potential valuation of $1.75 trillion, SpaceX is poised to make waves in the market and solidify its position as a key player in the space exploration sector.