Elon Musk’s SpaceX is moving fast to go public, with plans to file its initial public offering (IPO) prospectus with regulators as soon as this week or next. According to a report from The Information, the confidential filing moves the rocket and telecom giant closer to a June listing on the stock market.
The IPO is expected to be the largest in U.S. history by a significant margin. Advisers suggest SpaceX could look to raise more than $75 billion US, a jump from earlier estimates of $50 billion US. While the company was last valued at $1.25 trillion US, the final valuation and offering size won’t be locked in until a few weeks before the debut.
The filing may reveal some financial hurdles, including potential losses following the $250 billion US acquisition of Musk’s AI firm, xAI, last month. Despite this, investment firms remain hesitant to bet against Musk, especially given his massive following of individual investors.
Musk is reportedly pushing to give regular investors a bigger piece of the pie. While banks usually limit individual investors to 10 per cent of IPO shares, SpaceX could see that portion exceed 20 per cent. This would allow smaller investors using platforms like Robinhood, along with wealthy bank clients, to buy in early.
To keep the stock price stable, SpaceX is also planning a custom arrangement for insiders. Instead of the standard six-month lockup period that prevents early selling, the company’s advisers are working on a unique setup to prevent a massive sell-off of shares. This move comes after SpaceX raised roughly $10 billion US as a private company over the last two decades.
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