Hello everyone, just a quick update on the news that Elon Musk's SpaceX is preparing to go public.
SpaceX is reportedly moving forward with an internal share transfer deal that values the company at approximately $800 billion, paving the way for what could be the largest initial public offering (IPO) in history.
SpaceX has told employees that it is preparing for a possible public listing next year. This confirms that the company, founded by Musk in 2002 and which has since built a powerful rocket and satellite business, is seriously evaluating the possibility of going public.
SpaceX CFO Bret Johnsen wrote in a message to employees on Friday: "Our thinking is that if executed well enough and market conditions are favorable, the public offering could raise a substantial amount of money."
In his message, Johnson wrote that potential IPO proceeds could be used to: increase the number of launches of the company's Starship rocket to "crazy levels"; and deploy artificial intelligence in space. Data Center ; and work related to advancing unmanned and manned Mars missions.
SpaceX’s decision to explore going public came as a surprise to some people close to the company, which has long operated around Musk’s vision of “getting humans to Mars.”
About 12 years ago, Musk stated that SpaceX would only go public when its spacecraft could "regularly fly to Mars." In a 2013 social media post, he wrote: "Mars requires more than a decade to develop complex technologies, but the market only cares about the next three months, which will result in a conflict of objectives."
Earlier this week, Musk posted on the social media platform X, hinting that SpaceX might have an IPO.
According to information disclosed by Chief Financial Officer Brett Johnson in a memo to shareholders, the latest secondary market transaction was priced at $421 per share, almost double the $212 per share price in July of this year, when the company was valued at $400 billion.
This valuation surpasses the $500 billion record set by OpenAI, the parent company of ChatGPT, in October, making SpaceX once again the world's most valuable privately held company.
If Musk ultimately decides to proceed with the IPO, it will be another major move that will cause a sensation in the market. However, this plan also heavily depends on SpaceX's ability to successfully deliver on a series of ambitious and risky projects in the coming years.
SpaceX's IPO plans could raise well over $30 billion, making it the largest IPO in history if it goes ahead.
The company, helmed by Musk, aims to achieve a valuation of approximately $1.5 trillion for its overall business, a level close to the market capitalization Saudi Aramco established during its record-breaking IPO in 2019.
However, Johnson also stated in the email that the specific timing and corresponding valuation of the IPO remain uncertain, and the company does not rule out the possibility of ultimately not proceeding with the listing.
SpaceX conducts two share tender offers annually, providing shareholders, including employees, with opportunities to cash out or increase their holdings. This transaction is seen as an important valuation anchoring step before the IPO.
As the world's most launched rocket company, SpaceX dominates the aerospace field with its Falcon 9 rocket, which can send satellites and people into low Earth orbit.
In addition, SpaceX also provides low-Earth orbit internet service through its Starlink system, which consists of thousands of satellites. It holds a leading position in the field and currently serves millions of users.
(Source: China Fund News)
