Key Points:
- SpaceX intends to file its initial public offering paperwork with financial regulators within the next two weeks.
- Financial advisers expect the aerospace company to raise more than $75 billion during this stock market debut.
- Retail investors could capture more than 20% of the available shares, though executives have not finalized the exact figure.
- The company declined to comment on the leaked report, originally published in the Monday edition of The Information.
SpaceX wants to make a massive splash on the stock market very soon. According to a new report published by The Information on Tuesday, the rocket company plans to file its initial public offering prospectus with government regulators either later this week or sometime next week. The news outlet cited a reliable source who holds direct knowledge of the secret financial plans. If this timeline holds true, Wall Street will finally get a close look at the financial health of the world’s most valuable private aerospace company.
Financial advisers currently preparing for this event expect it to break historic records. They predict the company will seek to raise more than $75 billion in its initial public offering. To put that massive number into perspective, raising $75,000,000,000 would make this one of the largest stock market debuts in modern financial history. The company requires an unbelievable amount of cash to fund its ambitious projects, and tapping public markets is the fastest way to secure it.
Everyday people might get a huge chance to own a piece of the rocket builder. The leaked report suggests that the individual investor portion of the offering might exceed 20%. Usually, large banks and institutional investors swallow up the vast majority of shares during a highly anticipated stock debut. Reserving over 20% for regular retail buyers shows that the company knows it has a massive fan base. However, the source cautioned that executives have not yet finalized this exact percentage.
Journalists at Reuters quickly tried to verify the explosive claims made in the report. However, they could not immediately confirm the specific details about the timeline or the massive financial targets. SpaceX representatives did not immediately respond to official requests for a comment. Companies preparing to sell stock to the public typically have a strict quiet period during which they refrain from speaking with the media to avoid violating financial regulations.
Investors have waited more than 20 years for a chance to buy shares in this company. Founded by Elon Musk, the firm completely revolutionized the global space industry. The company routinely launches its Falcon 9 rockets and lands the boosters back on Earth for reuse. This reusable technology completely destroyed the competition and drastically lowered the cost of sending cargo into orbit. Today, the company handles the vast majority of commercial satellite launches worldwide.
A massive chunk of the company’s value comes directly from its satellite internet business called Starlink. The company already placed more than 5,000 small satellites into low Earth orbit to beam high-speed internet down to customers. Millions of people currently pay around $120 every single month for this service. Financial experts believe the massive revenue generated by Starlink will ultimately convince stock buyers that the $75 billion asking price makes perfect business sense.
Looking toward the future, the company is burning through billions of dollars developing its next-generation rocket, Starship. This massive stainless steel vehicle stands taller than the Statue of Liberty and packs enough power to carry 100 people to Mars. The company currently tests this vehicle in Texas and experiences occasional explosions and setbacks. Building a fleet of these massive rockets requires endless piles of cash, which perfectly explains why the executives suddenly want to tap into the public stock market right now.
If the regulatory filings actually hit government desks this week or next, the financial world will completely pause to read the details. A public filing will force the notoriously secretive company to reveal its exact revenue numbers, profit margins, and future financial risks. Stock brokers and space fans alike will watch the news feeds closely over the next 14 days to see if the rumors finally become reality.
