Topline
SpaceX's initial public offering has garnered a whopping $250 billion in demand from investors, according to Reuters, far beyond the $75 billion it aims to raise for the IPO that will make it one of the most valuable publicly traded companies in the world.
SpaceX is scheduled to go public on June 12.
Michael Nagle/Bloomberg
Key Facts
The Musk owned company is slated to sell about 555.6 million shares for $135 per share, which would raise roughly $75 billion and value the company somewhere around $1.77 trillion.
However, investors want more than what is being offered, according to Reuters, which cited unnamed sources familiar with the matter who said there is more than $250 billion in investor demand, which creates an oversubscription rate nearly four times the planned offering.
Sizable orders have been made by long-term investors, the sources told Reuters, noting SpaceX is still marketing its IPO as its president, Gwynne Shotwell, and finance chief, Bret Johnsen, were expected to attend a Morgan Stanley lunch meeting with about 300 investors Tuesday.
Forbes has reached out to SpaceX for comment.
What To Watch For
To meet massive demand for its IPO, SpaceX could potentially issue additional shares or raise its offering price. The company is scheduled to go public on June 12 under the ticker symbol “SPCX.â€
Forbes Valuation
We estimate Elon Musk's net worth at $792.8 billion as of Tuesday, making him the world's wealthiest person. Musk will further cement that distinction with SpaceX's IPO, which could very well make him the first trillionaire in history. Musk owns 42% of SpaceX's common stock.
Key Background
The SpaceX IPO will come months after the aerospace firm acquired artificial intelligence startup, xAI, which also incorporates the X social media platform, bringing three of Musk's companies under a singular banner. The merged company is looking to become a leader in the AI compute space by putting AI data centers in space, which SpaceX has claimed could handle extremely intensive AI workloads at greater efficiency than infrastructure on Earth's surface. It expects to deploy AI compute satellites as early as 2028, according to a Securities and Exchange Commission filing. SpaceX generated $18.7 billion in revenue last year but continued to be unprofitable, posting $4.9 billion in losses.
Further Reading
SpaceX Targets $75 Billion For IPO—Valuing Company Above $1.75 Trillion (Forbes)
