Musk’s SpaceX Set To Launch Largest IPO In History

Elon Musk’s SpaceX has set a share-price target of $135 ahead of its planned Nasdaq listing, the BBC said, adding that the figure — listed as $135 in the company filing — would value Elon Musk’s firm at about $1.75 trillion and could make the sale the largest initial public offering in history.

The broadcaster said SpaceX disclosed the estimate in an IPO filing and noted the early guidance — more than a week before trading begins — was an unusual move. It quoted the filing as saying the proposed price did not guarantee shares would sell at that level and that buyers would ultimately determine the final price, which could rise or fall.

The BBC reported SpaceX aims to begin trading on 12 June and is seeking to raise about $75 billion, which would top the current IPO record held by Saudi Aramco.

It said the proposed valuation marked a large increase from an earlier $1.25 trillion estimate this year and that, should shares sell at or above $135, the company would immediately become one of the world’s most valuable and that Musk — who the BBC noted controls more than 80 per cent of SpaceX’s voting stock — could see his wealth grow substantially.

The Dealogic data showed almost half of companies that have listed in the past 30 years have fallen in value after listing, and quoted Samuel Kerr of Mergermarket as saying the valuation was “incredibly rich.”

It added that SpaceX was being priced on expected future earnings rather than current performance.

The BBC also published SpaceX’s recent financials, saying Space Exploration Technologies recorded $18.6 billion in revenue last year with a $4.9 billion net loss, and $4.7 billion in sales and a $4.3 billion loss in the first quarter of this year. It said the company’s balance sheet showed about $102 billion in assets and $60.5 billion of debt.

SpaceX has broadened its business beyond rockets and satellite broadband into artificial intelligence, social media and space-based internet services, and quoted Laurence Pevsner of Lux Capital describing the shift and warning that the AI focus was “spiking the valuation” and posed a risky bet for shareholders.

SpaceX also acquired xAI and has plans for AI satellites and orbital data centres, and noted other AI-focused firms are preparing large capital raises.