SpaceX’s IPO Soars: Orders Exceed $10 Billion
SpaceX’s initial public offering has garnered significant interest, with numerous institutional investors reportedly placing orders exceeding $10 billion for shares. This heightened demand suggests a potentially record-setting debut on the market. Banks spearheading the offering by Elon Musk’s rocket, satellite, and artificial intelligence enterprise are anticipated to cease accepting orders from institutional investors on Wednesday following the market’s closure in New York at 4 pm, according to sources.
Closing the order books allows banks to assess demand prior to the listing and provide guidance to the company regarding pricing. SpaceX’s initial public offering is scheduled to be priced on June 11, with trading commencing the subsequent day. The company is offering 555.6 million shares at a fixed price of $135 each, which would raise approximately $75 billion, thereby valuing it at around $1.8 trillion. Retail investors retain the ability to submit orders for SpaceX shares on various platforms, even after the Wednesday deadline. The company is allocating as much as 30 percent of the offering to retail, according to source.
On Tuesday, Morgan Stanley is convening approximately 300 institutional investors at the bank’s New York headquarters for discussions with SpaceX management, including President Gwynne Shotwell and Chief Financial Officer Bret Johnsen, according to a source. The event will be hosted by the bank’s co-president Dan Simkowitz, according to an individual. A representative for SpaceX did not provide an immediate response to a request for comment. Representatives for Goldman Sachs Group Inc. and Morgan Stanley refrained from providing comments. Anticipation is mounting for the upcoming IPO, projected to surpass Saudi Aramco’s record-setting $29.4 billion debut in 2019.
The company has disclosed new sources of revenue in recent weeks, emphasising its AI capabilities. On Friday, SpaceX disclosed a partnership with Alphabet Inc.’s Google, wherein the Gemini AI model developer will remit $920 million monthly as part of a cloud services arrangement extending until 2029. It previously disclosed a similar agreement with Anthropic PBC. The entity previously recognised as Space Exploration Technologies Corp. will commence trading on Nasdaq and Nasdaq Texas under the designation SPCX.
