Elon Musk's SpaceX is set to go public with an Initial Public Offering, making it one of the US's top ten largest listed firms.
Key facts
- •SpaceX is set to go public with an Initial Public Offering, aiming to raise at least $75bn.
- •The company will be valued at around $1.75tn, making it one of the US's top ten largest listed firms.
- •Over 550 million shares will be available, priced at $135 each.
- •SpaceX has a history of net losses, with $18.6bn in revenue last year but a net loss of $4.9bn.
- •Elon Musk will still hold over 80% of the voting power after the share sale.
- •The IPO is the first of three AI-related mega-listings expected this year.
Next week, shares in Elon Musk's Texas-based SpaceX will go on sale in the largest ever public sale of shares. The company is planning to colonise Mars and put artificial intelligence data centres in space. The Initial Public Offering aims to raise at least $75bn.
IPO Details
The IPO will make millions of new shares in the company available to the public for the first time. The shares will be traded on the New York technology-focused Nasdaq market, with individuals able to apply to buy shares via certain investment platforms and brokers. There are over 550 million shares available, priced at $135 each.
Company Valuation and Risks
SpaceX is set to be valued at around $1.75tn, making it larger than rivals Anthropic and OpenAI. However, the company has a history of net losses, with $18.6bn in revenue last year but a net loss of $4.9bn. The IPO prospectus notes that the company may not achieve profitability in the future, raising concerns about the risks of investing in SpaceX.
Investor Interest and Concerns
Some investors are drawn to the company's ambitious projects, while others are sceptical about the feasibility of these plans. Analysts are unsure whether the share price will rise or fall once trading starts, citing the expensive and uncertain nature of the AI race. Elon Musk will still hold over 80% of the voting power after the share sale, determining the company's strategy and direction.
This article was independently rewritten by ManyPress editorial AI from reporting originally published by BBC Business.
