On Wednesday, SpaceX set its IPO share price at $135, highlighting Elon Musk’s ambition to challenge traditional Wall Street practices and secure a historic fundraising total.
The company’s choice to announce its price a week prior to the IPO is quite rare among significant U.S. offerings, reflecting Musk’s unique standing in finance as a kind of adventurous tycoon.
SpaceX’s updated IPO filing corroborates a recent Reuters report about the $135 price. The firm aims to raise $75 billion—this would be the largest IPO ever—and it values the company at $1.75 trillion, placing it among the top ten most valuable publicly traded companies in the U.S.
They will kick off their investor roadshow on Thursday, with pricing details set to come out on June 11. Trading on Nasdaq is expected to start the following day.
Musk has altered various aspects of SpaceX’s IPO strategy, including plans to allow retail investors more involvement, efforts for early index inclusion, and establishing governance to keep a strong founder presence.
“This IPO is uncommon in many respects, but considering it’s the largest in history, I guess that’s not surprising,” remarked an investor who plans to participate.
take it out on the road
Typically, roadshows are designed for companies and their bankers to engage with investors and gauge a price range for stocks. This process highlights the connections between bankers and potential investors, along with the market’s grasp of the offering.
After preliminary meetings with investors before the roadshow, SpaceX suggested it was aiming for a valuation near $1.75 trillion, though some investors proposed figures below $1.5 trillion. Plans, including the amount being raised, might shift as further investor meetings unfold, according to sources familiar with the situation.
There’s a sense on Wall Street of urgency to get involved, especially given Musk’s reputation and his management over a product that could yield substantial fees for him. One investor noted that major firms seem to be “posturing” by indicating early financial commitment, which reflects Musk’s sway over the investment landscape.
Other facets of SpaceX’s offerings make an impression as well. Large international banks such as Mizuho Bank, Deutsche Bank, UBS, and Barclays are focusing on attracting high-net-worth buyers within their own countries. Until now, retail investors haven’t been a priority, with bankers concentrating instead on feedback from sizable asset managers like Fidelity and influential hedge funds like Citadel.
Previous reports indicated that the company was thinking of earmarking as much as 30% of the offering for individual investors, a significant move aimed at engaging Musk’s dedicated following and increasing their share in the firm.
