SpaceX has officially begun its initial public offering (IPO) process, indicating that it could become the largest public offering ever. According to reports, the company has filed confidentially with the SEC, and is targeting a potential listing as early as June.
The SpaceX IPO will attract a large number of investors as its satellite internet business has shown rapid growth during its evolution.
The move by the tech giant could raise up to $75 billion, with the company reportedly seeking a valuation of $1.8 trillion. This valuation will put the company ahead of major companies like Tesla. Companies will determine their final valuation and share size before the listing day arrives.
According to the report, SpaceX is planning to implement a dual-class share system that will enable corporate insiders, including CEO Elon Musk, to retain increased rights. The company plans to distribute more than 20% of its shares to individual investors, which is higher than its typical distribution approach.
The Starlink satellite-based internet service, which SpaceX introduced in 2019, serves as the essential component driving SpaceX’s initial public offering. Starlink is believed to generate the majority of SpaceX’s profits and continues to expand its operations around the world, strengthening the company’s investment prospects.
The market is now facing increasing competition from various companies. Amazon is developing its own satellite program, while it is investigating partnership opportunities that would enhance its capabilities for low-Earth orbit connectivity services.
The SpaceX IPO represents a significant achievement for Elon Musk as it completes his vision, which started with reusable rockets and led to space exploration. Company founder Musk, who founded the business in 2002, will retain his majority ownership stake even after the public offering.
