Elon Musk's aerospace and satellite company SpaceX plans to raise at least $75 billion in an initial public offering unprecedented in history, two people familiar with the matter told Reuters on Tuesday. Sources who declined to be named said that after an early investor pre-roadshow (testing the water and asking for prices), the company finalized the IPO target valuation of US$1.75 trillion (including green shoe options); the green shoe mechanism allows underwriters to issue new shares when market subscription exceeds expectations.
Reuters previously reported that SpaceX’s initial IPO valuation was expected to be around $1.75 trillion.
According to previous news, the official road show for this IPO is scheduled to start this Thursday. People familiar with the matter reminded that as communication with institutional investors progresses, the total amount of funds raised and other issuance plans may still be adjusted.
This listing will give ordinary public investors a rare opportunity to take shares and share Musk's industrial layout in the fields of space exploration, satellite communications and artificial intelligence; SpaceX is already the core asset in the business map of the world's richest man.
SpaceX did not respond to a request for comment.
According to the news, this IPO is a full issuance of new shares, and all net proceeds will belong to the listed company. The original shareholders will not cash out their old shares.