Following a recent share sale by existing investors, Elon Musk’s SpaceX has seen its valuation increase to nearly $150 billion, reports sources speaking to CNBC.
SpaceX is said to have reached an agreement with new and existing investors to sell up to $750 million in shares at $81 each, according to a purchase offer seen by CNBC. This sale does not represent a capital raise, but rather a secondary sale of existing shares. This procedure is usually performed twice yearly by SpaceX to allow employees and other shareholders the opportunity to sell stock.
The latest share price represents a roughly 5% increase from the previous secondary sale, which stood at $77 per share, marking a valuation of around $140 billion. The company declined to comment on this purchase offer.
SpaceX remains one of the most valuable private firms worldwide, earning it the status of a “centicorn” or “hectocorn”— a unicorn company valued 100 times over at $1 billion.
The firm has secured a near-monopoly in the U.S. satellite launch market, largely due to its dependable Falcon rockets and the struggles of rival companies. In June, SpaceX recorded its 200th orbital rocket booster landing and has achieved an impressive average of one launch every four days this year with 47 launches to date.
Furthermore, SpaceX’s Starlink internet satellite service has rapidly grown to accommodate over 1.5 million subscribers since its launch less than three years ago. The company expects that Starlink will start making profits in 2023 after achieving positive cash flow in a quarter last year.
Despite this progress, the potential initial public offering (IPO) for Starlink remains uncertain, with no recent updates provided by SpaceX President Gwynne Shotwell. It is anticipated that the company is unlikely to make Starlink public until 2025 or later.
