SpaceX IPO: Elon Musk’s company SpaceX is going to launch its IPO next year. This has been revealed in a Bloomberg report. The company has also recently approved its insider share sale, due to which it is expected to launch an IPO by next year. Due to this insider share trading, the valuation of the company has now increased to 800 billion dollars. The company’s Chief Financial Officer (CFO) Brett Johnson has informed the shareholders about this by sending a memo.
What else did Brett say in the letter?
According to the report, the company is offering shares to insiders at Rs 421 per share in the latest secondary offering as it plans to potentially launch an IPO in 2026. The New York Times reported that in the letter sent by CFO Brett Johnson, it was told that the company is planning to buy back shares worth $ 2.56 billion from shareholders at the rate of $ 421 per share.
According to the NYT, Johnson said in the letter, “Whether this will actually happen, when it will happen, and at what valuation is still very uncertain, but the plan is that if we do it right and the market also supports, then a public offering can raise a lot of capital.”
What is secondary offering?
This is a process through which companies usually give employees or early investors an opportunity to sell their shares before the IPO. SpaceX also did this recently. SpaceX raises capital from shareholders by doing buyback twice a year and shareholders also get the opportunity to withdraw cash from their holdings.
This process prepares the company to launch an IPO, so that a large amount of funds can be raised. SpaceX can also use the money raised from the IPO to fund Starship and Starlink projects. After this secondary offering, the valuation of SpaceX has increased to $ 800 billion and if the IPO is launched, the valuation can even cross $ 1 trillion.
Will Indians get a chance to place bets?
- The answer is yes. Indian residents can invest in this American IPO under the Liberalized Remittance Scheme of RBI, under which up to $ 250,000 can be sent every year for investment abroad.
- For this, first of all you have to choose a broker. Open a global trading account with an Indian platform that offers US investing or direct IPO access with a US broker. Not all brokers allow IPO applications so this has to be checked beforehand.
- Now complete your KYC. For this, submit basic documents like PAN and passport. This process is online and is usually completed in a short period of time.
- After this, transfer money from your bank in US dollars through LRS route and apply for IPO through the broker’s platform. However, there is no guarantee of allotment.
- If you are allotted shares, it will be automatically credited to your demat account. If not, then most investors buy shares only after the stock is listed on the exchange.
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