SpaceX IPO: Elon Musk’s company SpaceX is now preparing to enter the stock market. The company is preparing to launch IPO i.e. Initial Public Offering. Through this IPO, the company can raise more than $30 billion, and if this happens, it will prove to be the biggest listing in history.
According to the report of Moneycontrol, Elon Musk’s company SpaceX (SpaceX IPO) wants to take its entire business to a value of about 1.5 trillion dollars i.e. 1 lakh 50 thousand billion dollars. This value will be equal to Saudi Aramco’s record of 2019, when Aramco had raised $29 billion. If this happens, SpaceX will become the most expensive listed company in the world. SpaceX executives are preparing to take the company to the stock market in mid or late 2026. But seeing the market situation, the date may change, and this IPO may also come by 2027.
Strong rise in shares
After the news of SpaceX’s IPO, there was a huge jump in the shares of other space companies on Tuesday. Shares of EchoStar, the company that is selling spectrum licenses to SpaceX, rose as much as 12% in New York and set a new record. Shares of Rocket Lab Company also increased by 4.3%. According to Bloomberg, Elon Musk and the company’s board have accelerated the listing and fund raising plans in recent days, even hiring for important posts has started and planning is also being done on where the money will be invested. All this happened when SpaceX was finalizing its latest insider share sale.
Why is the company bringing IPO early?
A big reason for bringing this IPO so soon is that the company’s Starlink satellite internet business which is growing very fast, along with it there is also a new plan to provide direct internet on mobile. On top of that, development of Starship rocket is going on. Because of all this, the company feels that now is the right time to raise money in the market and all these big dreams will be fulfilled with the money received from IPO. This company is going to earn revenue of about 15 billion dollars by the year 2025.
What is the company going to do with the money raised from IPO?
SpaceX is going to earn about 15 billion dollars (about Rs 1.25 lakh crore) this year i.e. in 2025, and in the next year 2026 this figure will reach 22 to 24 billion dollars. SpaceX will spend some part of the money raised from the IPO on building a data center in space. The company will also purchase the chips required to run these data centres. Elon Musk had recently shown enthusiasm for this idea at a Baron Capital event.
company valuation
SpaceX has currently kept the price of one share at around $ 420 in its ongoing secondary share sale, due to which the total valuation of the company has reached more than $ 800 billion. The company is allowing its employees to sell shares worth about $2 billion and will also buy back some shares itself. All this is being done so that the exact market value of the company is determined before the IPO and everyone knows how valuable SpaceX actually is.
Elon Musk wrote on his platform He further said that the reason for the increase in the company’s valuation is the rapid progress of Starship rocket and Starlink, as well as acquiring direct-to-mobile spectrum across the world, which will make our market much larger.
World’s largest IPO
SpaceX executives have many times talked about spinning off the Starlink business as a separate company and launching a separate IPO of it, an idea first mooted by company President Gwynn Shotwell in 2020. But Elon Musk expressed doubt on the timing every time and in 2024, the company’s CFO Brett Johnson clearly said that Starlink’s IPO will not happen soon, it will happen only in the coming few years. Meaning, right now the IPO of the entire company will come first, the plan to separate Starlink will be seen later.
SpaceX’s largest long-term investors are Peter Thiel’s Founders Fund, Justin Fischner-Wolfson’s 137 Ventures, Valor Equity Partners, Fidelity and Google’s parent company Alphabet. If SpaceX sells its 5% stake, it will raise $40 billion, which will be the world’s largest IPO. The record till now is held by Saudi Aramco which had earned $29 billion by selling only 1.5% stake in 2019.
