According to market sources, executives at SpaceX, Elon Musk's rocket manufacturer, are beginning the process of selecting Wall Street banks. The company provides advisory services for its initial public offering (IPO).
Reports indicate that several investment banks are scheduled to conduct preliminary bidding this week, a process known in the industry as the "bake-off" stage . This refers to a process where companies planning an IPO invite multiple investment banks to participate in the bidding to select the most suitable partner to handle their IPO-related underwriting, advisory, and other matters.
This represents a significant step forward for SpaceX toward an IPO.
Last Tuesday, it was reported that SpaceX is seeking an IPO next year, aiming to raise well over $30 billion, potentially creating the largest IPO in history with a target valuation of approximately $1.5 trillion.
Although SpaceX has not officially announced its IPO, Musk's public statements and internal memos from company executives have sent clear signals of an IPO.
Last Wednesday, Musk hinted in an interaction with tech media figures on social media that his SpaceX company might go public.
Last Friday, SpaceX CFO Brett Johnson said in an internal memo to employees that the company is preparing for a potential IPO in 2026 to raise substantial funds. However, he also emphasized that whether or not the company will eventually go public and the specific timeline "remain highly uncertain."
The rocket and satellite maker's decision to seek an IPO surprised some people close to the company. Musk has long been outspoken in his opposition to taking SpaceX public. He has repeatedly stated publicly that he does not want SpaceX to become like Tesla . He believes that the capital market's pursuit of short-term financial gains is fundamentally at odds with core missions like SpaceX's Mars colonization, which require long-term, massive investments and have little chance of short-term returns.
Analysts believe that Musk's change of stance stems from two factors: firstly, his "AI vision" requires huge amounts of funding, and secondly, his solid financial performance provides the company with the foundation for going public.
"Launching a satellite with a capacity of 1 million tons per year, and equipping each satellite with a power of 100 kilowatts, can add 100 gigawatts of artificial intelligence annually." Computing power. This is Musk's latest vision for space AI. As the core vehicle for implementing this vision, SpaceX will undoubtedly play a crucial role.
A memo from last Friday revealed that if the IPO goes ahead, the funds raised will be used to: increase the launch frequency of Starship rockets to "crazy levels" and deploy AI data centers in space. And to advance unmanned and manned Mars missions.
Back in 2013, Musk publicly stated that SpaceX would only be ready to go public when its spacecraft could regularly travel to and from Mars. On December 6, Musk posted on the social media platform X: "SpaceX has maintained positive cash flow for many years and conducts regular stock buybacks twice a year to provide liquidity for employees and investors."
Founded over 20 years ago, SpaceX has grown into a major U.S. government contractor, responsible for launching satellites and transporting astronauts. Its valuation has also steadily increased over time, most recently due to its Starlink satellite internet project. The business has been further enhanced by the increase in customers.
The memo from last Friday also revealed that SpaceX has set its latest internal stock offering price at $421 per share, corresponding to a staggering $800 billion valuation for the company, more than double the valuation of approximately $400 billion earlier this year.
(Article source: CLS)
